I don’t know what the reason may be. Warren bombing Warsh? The typical cease fire on/cease fire off war wrangling. A combo? Or maybe just the technicals, which were and still are on one of our favored plans.
GDX (daily) just broke below the 50 day moving average, which we noted in NFTRH 911 as an important marker:
Continue to be vulnerable to the A-B-C correction view, last shown in this April 16th NFTRH+ update. However, GDX is down (98.65), but still above its 50 day moving average (98.35) in pre-market. Generally, that is the marker I am watching to either keep GDX viable bull again, or fail and go A-B-C. It should be noted that with the exception of a little pop on Friday, GDX volume has declined on the rally from March 20th. That is a bear flag characteristic.
So now we wait to see if this in-day situation closes the day in this state. That would be another strong indication in favor of A-B-C.
There is so much noise that anything (bull situation or bear) can be undone by a news item. Personally, all I can do in a situation like this is follow the charts. Yesterday I added miner short hedge JDST to my SPXS and UVXY holdings. I did not update the in-day notes because a) the SMA 50 had not broken down and b) I was really tired and stepping away from the market. So I set shock absorber in there so I could just forget the market for a bit.
I believe the analysis provided was enough for people to make their own decisions.
Now I am watching to see if a) the gold stock breakdown is real, and b) if the stock market may follow with a pullback of its own.
That’s all I got, folks. For now. I won’t be watching the market for chunks of today.
