As noted to subscribers I initiated miner bear DUST a few weeks ago and even added to it after it got crushed on the FOMC rollover (talk about a day to have patience… ). That is because it is guarding the miners I hold; the ones I have chosen not to get rid of despite a short-term bearish technical view on the sector (pending the bounce, which may be ending this week) and the bottom/bounce view I’ve been nursing on the USD.
DUST is actually green now for the first time since the week I initiated it. I don’t want to pretend to be a know-it-all wiseguy; the last couple of weeks have been somewhat annoying to me emotionally and not at all profitable (in fact, I’ve had a slight draw down) as various sectors drain momentum and/or diverge (I’ve adjusted to the best of my abilities).
Anyway, here’s the status of GDX and its evil brother, DUST. The major mining indexes/ETFs halted at projected arrow #4, failing to eclipse even the June high, which would have started turning the tables to a bull view. If today’s breakdown is real and Uncle Buck actually bounces for real, there could be some appreciable downside before what would be a buying opportunity * comes about.
* Said buying opportunity would be for an oversold bear rally, worst case and a new bull phase, best case. The answer to that would be in future moves in various other markets. I still think a stronger USD is key because I still think it would play a role in weakening the broad stock market.
Subscribe to NFTRH Premium for your 40-55 page weekly report, interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Also, you can follow via Twitter @BiiwiiNFTRH, StockTwits, RSS or sign up to receive posts directly by email (right sidebar).