Comments on: Shorting Gold Miners (GDX) via DUST long

By: snp

snp — Tue, 02 Feb 2016 03:52:13 +0000

In reply to rsotc. im sorry I didn't say. I meant GDX. seems slightly bullish looked at on daily.

By: rsotc

rsotc — Mon, 01 Feb 2016 20:41:23 +0000

Here's the embedded 15-minute chart of DUST which is posted in that link in the previous reply:

By: rsotc

rsotc — Mon, 01 Feb 2016 20:39:03 +0000

snp- I assume you mean the downtrend line on DUST? If so, while it may appear too steep to be valid when viewed on the daily time frame, it is my ideal setup when viewed on the intraday charts. In fact, it makes up the top of this bullish falling wedge on the DUST 15 minute chart. The uptrends & downtrends in DUST are so powerful that if you take a look at the daily chart going back a couple of years, you'll see that the steep slope of the downtrend line that you mention is extremely typical with DUST, hence, the reason I'll focus on the intraday charts often when trading the miners. DUST 15-minute Feb 1st

By: snp

snp — Mon, 01 Feb 2016 20:25:29 +0000

do you think the TL down from 21.25 is too steep to be valid?

By: rsotc

rsotc — Mon, 01 Feb 2016 17:37:06 +0000

david- I may very well extend the trade to the 13.80 GDX level but should mention that there is also some minor resistance on GDX around 14 that could come into play. Will update the trade as it goes. Also keep in mind that a move in GDX from 14.56 down to 14.27, which is likely to be hit today, would correlate to nearly a 6% gain in DUST. I took an over-sized (day trade sized) position with the intention of peeling a good part of it off today either if/when 14.27 is hit or before the close, likely bringing home a modest swing (overnight) position.

By: david k

david k — Mon, 01 Feb 2016 17:24:16 +0000

Pretty shallow pullback you are expecting. Would prefer to see it get down to the 13.81 target!