Here’s a quick snapshot of the most recent trades on GDX using DUST (2x gold miners ETF) & NUGT (3x long gold miners ETF). Both the new Trading Room (forum) and the comment section below each post allow me to more actively post what I’m seeing & doing in the markets whereas in the past & as will continue to be the case going forward, the posts on the front page of the site are primarily reserved for market analysis, swing trade ideas & longer-term trade ideas.
GDX 5 min Oct 20th
For example, via both the comments section (under yesterday’s GDX update) as well as the Trading Room, I was able to share that shortly after booking early profits on the DUST trade, that I also reversed to a long position in the miners via NUGT (and was considering selling my GDX puts, which I did) in order to trade a quick counter-trend bounce off of that support level. Although I had planned & still do plan to re-enter DUST for the next leg down to my price target of 16.30, I’ve booked full profits on the NUGT long & do not have any exposure to the miners in my trading account (several long-term accounts still hold miners).
I refer to this as “micro-managing” a trade which means that I will often reverse (i.e.- go from long to short or short to long) a swing position that I’m trading for a quick counter-trend bounce, often re-entering the original position (long or short) after booking quick profits on the reversal trade. Micro-managing trades would not be suggested to those new to trading or those who do not have the time required to devote their full attention to the markets during the day.
I have a few other trades to manage, including MNKD which hit & exceeded the first price target shortly after the open today & I will post my thoughts on GDX asap. Often, after a very profitable long/short/long run such as this I will go to cash & take a step back in order to be very selective on my next entry as to avoid over-trading & giving back profits. As of now, DUST still remains an Active Short Trade on the site with a final price target of 16.30 (subject to revision).