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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 3 comments
    Apr 22, 2014 6:00 PM | about stocks: DUST, GDX, NEM

    As indicated in yesterday's update, the action in the Market Vectors Gold Miners ETF (NYSEARCA:GDX) may have been a reversal.

    As shown in the chart below, the GDX penetrated the down-channel line and the result was to exit (with profit) the Direxion Daily Gold Miners Bear 3X Shares (NYSEARCA:DUST) position.

    (click to enlarge)GDX Daily

    Chart by TeleChart

    Update Note (8:02p.m. CST)

    • The volume on today's GDX move up is light. Even though it penetrated the channel line and prompted the exit, the move at this point is not strong.
    • If GDX has a gap-lower open at the next session and then makes a new daily low, the whole completion will change.
    • There are a lot of cross-currents and high emotions. Standing above the fray is the objective.

    Another look at the GDX shows a potential trading range developing.

    When markets are not trending, they are typically in some kind of trading range. There is obvious overhead resistance in the 25.50 area.

    How GDX behaves as it reaches this area (if it reaches this area) may indicate a potential trade set-up.

    (click to enlarge)GDX Daily

    Chart by TeleChart

    Looking at Newmont Mining (NYSE:NEM) it appeared as if NEM would sell-off as anticipated into a short-covering downdraft. However, it started to show the buoyancy mentioned in yesterday's post.

    There has been no breakout to the up-side and the move is "news" driven which may or may not be sustainable.

    (click to enlarge)NEM Daily

    Chart by TeleChart

    As a caution, there is a lot of volume being expended and the price bars are wide indicating instability (up or down) on NEM.

    Update note (8:05p.m. CST):

    • Any erosion such as a low below today's low will bring the short-covering downdraft back into play.......NEM like several other miners (ABX, AEM, AUY) is unstable at this point.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: DUST, GDX, NEM
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Comments (3)
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  • ptTL9
    , contributor
    Comments (328) | Send Message
    Paul, appreciate your updates, so far miners are in a good shape today, probably month end and an oversold bounce, gold is a different tell. Good luck
    23 Apr 2014, 11:46 AM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (120) | Send Message
    Author’s reply » Thanks for the input.


    You are right. Gold is trending down and the miners are up.


    Fractured markets like this are not healthy. There are always opportunities and short-term trades are possible. However, with one down and the other up one has to be continually on-guard.


    On a different side, Cameco Corp may (I say may) be leading U308 out of the hole. We won't know of course until it is obvious.


    "Yellowcake" might be the other gold metal.


    Thanks again,


    23 Apr 2014, 11:57 AM Reply Like
  • ptTL9
    , contributor
    Comments (328) | Send Message
    Thanks, Paul


    will add Cameco Corp to my watch list.
    23 Apr 2014, 02:20 PM Reply Like
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