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Paul Mosgovoy
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Truth is timeless: “Markets never change” – Jesse Livermore, 1923 The early masters, Livermore, Wyckoff and Loeb isolated themselves from the crowd and crowd thinking. None of them ever graduated high-school and yet they each became legends in the market. Their techniques have been time-tested.... More
  • Market Summary: DUST, GDX, NEM 2 comments
    Apr 21, 2014 5:33 PM | about stocks: DUST, GDX, NEM

    It is the market's job to push the extreme.

    Today's action in the Market Vectors Gold Miners ETF (NYSEARCA:GDX) might be reversal action.

    The chart below shows that if GDX trades in the 24.00 - area (or higher) at the next session, the channel line has been broken and the position in the Direxion Daily Gold Miners Bear 3X shares ETF (NYSEARCA:DUST) will be closed.

    (click to enlarge)GDX Daily

    Chart by TeleChart

    Looking at Newmont Mining (NYSE:NEM) shown below, we can see that today's price action may be short-covering. Press releases such as this link typically generate short-term counter-trend price action.

    (click to enlarge)NEM Daily

    Chart by TeleChart

    If NEM declines quickly back down to the bottom of the wedge (and then breaks lower), then we know that the original short-covering assessment was correct.

    If NEM price action remains buoyant, then probabilities start to point to a move higher not only for NEM, but potentially the rest of the miners as well.

    Disclosure: I am long DUST.

    Stocks: DUST, GDX, NEM
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Comments (2)
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  • ptTL9
    , contributor
    Comments (323) | Send Message
    I am following your trade DUST/NEM, and it seems the tide is trying to turn around for miners. Gold is down to 1276 but miners not selling off. Will wait impatiently for your next instablog/comment, I put some money in nugt/jnug for a quick trade, don't have any conviction in any direction in present time.
    22 Apr 2014, 12:00 PM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (120) | Send Message
    Author’s reply » Exited out of DUST today. Yesterday was a potential reversal as stated in that update. Channel line on GDX has been penetrated to the up-side......will post an update within the hour.


    After hours trading available until 8:00p.m. EST if needed.
    22 Apr 2014, 05:03 PM Reply Like
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