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GDX Trade Update

GDX came within a mere 32 cents of the first target this morning before reversing while yesterday's potential divergences in GDX & SIL were confirmed today via a bullish crossover, induced by the US dollar rally which in turn was induced by the ISM miss. My expectation is that rally will be relatively short-lived with the most likely reversal points at either the 26.60 R level or the 27.50 R level. As such, I'm going to leave the current targets & suggested stops in place for now.

Today's big miss on the ISM Mfg Index level immediately reduced the change for a Sept rate hike, sending the dollar sharply lower with a concurrent spike in gold, which has had an on & off inverse relationship with the $USD lately. As these ISM Manufacturing Index charts show, as with most other economic indicators, the economy is clearly slowing down & could be headed towards a recession in the coming quarters.

ISM Mfg Index Sept 1st

ISM Mfg Index Sept 1st

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Sep 1, 2016 12:13pm|Categories: Completed Trades - Short, Gold & Commodities|Tags: , , |1 Comment

One Comment

  1. Teeps01 September 2, 2016 10:05 am at 10:05 am

    Hi Randy
    Would an add to the gdx short around here 27.30 ish as I type, be an objective short with a stop above 29.00 as I have a gap just below here?

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