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NUGT GDX Bounce Target Hit, Awaiting Next Short Entry

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

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).

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Oct 20, 2015 10:21am|Categories: Completed Trades - Short, Gold & Commodities|Tags: , , |3 Comments

3 Comments

  1. cheri October 20, 2015 10:51 am at 10:51 am

    DUST short w target of 16.30?????? I think you mean long…

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  2. cheri October 20, 2015 10:55 am at 10:55 am

    dust is 12.96 currently

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  3. rsotc October 20, 2015 11:45 am at 11:45 am

    @cheri – I’ve debated with how to refer to and more importantly, how to categorize the inverse ETF as trade ideas on the site. Although I was referring to going long DUST as a short play on the miners, I’ve tagged the post with both the symbols for DUST & GDX (as some traders might prefer to short GDX directly or trade options on it (buy puts, sell calls, etc…) and I even added NUGT in this case, as it was referenced in this post plus, one could also short NUGT in lieu of a long DUST position. As such, since either a long DUST or short GDX trade is essentially a short on the miners, in order for a visitor of the site to come in to see the short trade ideas on the site (from the menu bar up top), the DUST long is assigned to the Active Short Trades category.

    I know this can get very confusing because at times I will short an inverse ETF to go long (e.g.- short DUST to go long the miners). Not really a perfect solution other than carefully reading the post & as you just did, post a question in the comment section to get clarification as I often do make typos in rushing to get these time-sensitive updates published.

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