I’ve had a few request for an update on GDX (gold miners ETF). While I still don’t yet have the confidence to add GDX and/or NUGT as an official short trade idea, I do still favor a pullback to any or all of the horizontal support lines on this daily chart. Even if gold (which is also trading at a divergent high) continues to hold up or rise on a flight-to-safety bid, there have been periods, especially during the bear market of 2007-2009, where I can recall the gold mining stocks getting sold along with other equities when the market came under heavy selling pressure, even when gold prices were holding up. Again, I do not have a very high degree of confidence on where the miners are headed and as such, my focus right now is on higher probability trade ideas/sectors, such as XLP, XOP, XLF, IWM, etc..
GDX daily June 27th