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DUST: Saved by (or just before) the bell

As a result of the sharp reversal before the opening bell, the DUST trade went from what was looking to be a near-certain gap below my 12.06 stop, to a very modest gap down in DUST (gap up in GDX) with DUST turning positive shortly (GDX negative) shortly after the open. The 1-minute chart of GDX below, which shows the post & pre-market trades in the shaded area, shows just how many active traders are in GDX at this time, shorting and/or booking profits just before the open as soon as that measured target for the bullish pennant was hit. Since GDX peaked at 16.75 in the pre-market session at 8:41am ET, it plunged nearly 5% before the first 30 minutes after the opening bell, a comparable gain (recovery) of nearly 15% in DUST.

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Oct 23, 2015 10:05am|Categories: Completed Trades - Short, Gold & Commodities|Tags: , |Comments Off on DUST: Saved by (or just before) the bell