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GDX DUST Update

GDX 10 min Oct 23rd

GDX 10 min Oct 23rd

GDX is currently poised to gap to 16.65ish area would would be the measured target for this bullish pennant pattern. Barring a sharp reversal before the close, that will exceed my stop for the most recent DUST micro-managing (unofficial) trade taken yesterday. The 17.05 area is the next key resistance for GDX & will likely close the official DUST swing trade should GDX climb much above that level.

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Oct 23, 2015 8:54am|Categories: Completed Trades - Short, Gold & Commodities|Tags: , |7 Comments

7 Comments

  1. david k October 23, 2015 9:43 am at 9:43 am

    Quite the reversal in GDX so far.

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    • rsotc October 23, 2015 10:11 am at 10:11 am

      Exactly. Essentially, when GDX topped in pre-market shortly before the open today, DUST ripped higher by more than 17% in just over an hour (I underestimated it to about 15% in the update that I just posted but just measured it). Quite the reversal for sure.

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  2. RickySixx6 October 23, 2015 11:40 am at 11:40 am

    Did all of that action still maintain your belief/position of a 14-16 Dust in the near term?

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    • rsotc October 23, 2015 12:10 pm at 12:10 pm

      @rickysixx6 Although that big pre-market rip & reversal in GDX certainly got my attention, I can’t say that it changed my outlook for GDX although I can say that since shortly after selling NUGT then buying DUST yesterday, I’ve started to reassess my final pullback target in the miners with the increasing possibility that it may be completed. In fact, I may post a revision/suggestion to tighten stops on DUST here shortly as an update break of this triangle pattern in GDX would be bullish for the miners & I’m actually leaning towards the upside resolution at this time.

      View post on imgur.com

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  3. RickySixx6 October 23, 2015 12:26 pm at 12:26 pm

    I think you and I are seeing the same thing. For anyone holding DUST, the most concerning thing that I’ve witness this week is how resiliant the miners have been to any drop in gold vs. how well it’s reacted to gold rises.

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  4. rsotc October 23, 2015 12:47 pm at 12:47 pm

    Good point about the resiliency of the miners lately. I’m not sure if you saw this but I posted a detailed video analysis of both precious metals & the mining sector on Oct 1st which clearly lays out what I believe to be a bullish case, both intermediate & potentially longer-term. http://rightsideofthechart.com/precious-metals-mining-sector-outlook-video/ I also started making a case for a major top & reversal in the $USD months ago (that analysis can be found under the ‘Posts By Ticker’ drop-down menu on the home page under any of the following tags: $USD, $$DXY, or UUP.

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  5. RickySixx6 October 23, 2015 2:06 pm at 2:06 pm

    Looks like some of the leaders (thus explaining GDX out performing GDXJ) are telling us where its all going. Some big money now chasing the safer bets. Only a matter of time before the Juniors follow, chase, and exceed on the aggregate. I’m starting some long term bets now with the bigger guys, slowly pouring in more if I cont. seeing some promising moves.

    A big move down in gold sub 1100 wouldn’t shock me but, the HUI/GOLD ratio of sub .1 is over IMO Some of us will consider ourselves fortunate to even grab .115’s and 1.2s

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