This morning's action in the Market Vectors Daily Gold Miner ETF (NYSEARCA:GDX) has essentially rejected the bull case for higher prices.
A marginal new daily high was made within the first hour or so of trading before that move was retraced.
Taking a look at the Direxion Daily Gold Miners Bear 3X ETF (NYSEARCA:DUST) we can see yet another potential acceleration of the trend higher.
This time we have moved away from a 1,300%/yearly to an even more aggressive 25,000%/yearly.
This new change in acceleration will not be fully confirmed until DUST makes a new daily high (and does not break the trend in the process). However, the probabilities are favoring such a move.
Chart by TeleChart
How long does it take to achieve a 100% gain on a trend that is rising at 25,000%/year Answer: A Fibonacci 34 days.
Obviously, this is not a prediction and everyone reading these updates is responsible for their own accounts.
What is being shown here is a succession of examples on how the bulls get trapped and the bears get shaken out.
Each successive day builds the case for a downward move of significance (a politically correct version of "wipe-out") in gold and the gold miners.
Any break of the trend-lines shown would start to move the case for GDX to the bull side. For now, the trend remains down.
Disclosure: I am long DUST.