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Market Update: FAZ, GDX, NEM

|Includes:Direxion Daily Financial Bear 3x Shares ETF (FAZ), GDX, NEM

In this post, it was highlighted that Newmont Mining (NYSE:NEM) was experiencing a move that was "news" generated. These moves are typically not sustained and today's action in NEM may have trapped the bulls.

From a trading perspective, the past two weeks in NEM did not ever represent (in our analysis) a low-risk opportunity either to the long side or the short side. So, as was indicated in this link, we were leaving NEM alone.

The one thing that NEM may be telling us is that the overall gold mining sector may be making progress to a potential capitulation event that has been discussed at length.

The Market Vectors Gold Miners ETF (NYSEARCA:GDX) is essentially caught in traffic and at this point does not present a low risk opportunity either.

With the Fed meeting coming up tomorrow and Wednesday, a good strategy is to not establish positions or have marginal positions if there is a possibility of significant volatility.

Moving on to the Direxion Russell 1000 Financials Bearish 3X ETF (NYSEARCA:FAZ) we have an excellent example of a low-risk entry and subsequent market action follow-through.

(click to enlarge)FAZ Daily ChartClick to enlarge

Chart by TeleChart

Since the position is well away from the entry point and in-the-green, the plan is to maintain (unless stopped-out) through the Fed meeting and the subsequent announcement at 2:00p.m. EST, Wednesday.

Disclosure: I am long FAZ.

Stocks: FAZ, GDX, NEM