NFTRH+; And of course… the larger gap will fill


Why do people get involved with the gold stock sector? And in my case why get involved with it when you don’t like the fundamentals (or the technicals, for that matter)?

Because it may set up as an epic trade out ahead.

But in the here and now, while stock markets happily go on their bullish way, the ignominious counter-cyclical sector is not participating. Yesterday on some weak economic data the gold bugs cheered, gold stocks pumped at the open and then proceeded to promptly drop.

We noted a normal opening gap to fill on the 15 min. chart and we noted a less desirable but still normal larger gap to fill. It looks like GDX is about to accomplish that. Below the gap is support in the upper 33s.

Is the bounce still on? Technically, yes. Are the fundamentals still biased bearish. Oh yes. Are the larger trends down? Yes. I am going to hang in on the bounce play for a bit here but it is up to individual players to play or not play as they see fit, given the current technical and fundamental situation.