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GDX: Bulls May Be Trapped........Again

|Includes:VanEck Vectors Gold Miners ETF (GDX)

There may be a bull-trap setting up in the Market Vectors Daily Gold Miner ETF (NYSEARCA:GDX).

The GDX made a slight new high from yesterday's session but held below the 22.54 high from 6/2/14.

The new high appears to be eroding back into the previous trading range.

This action is typically referred to as a false breakout.

GDX 30-min Chart

Chart by TeleChart

For those who were looking for a low-risk entry point, this may be an opportunity.

However, we are not going to increase the position size in the Direxion Daily Gold Miner Bear 3X ETF (NYSEARCA:DUST) at this point.

The current price action is potentially at a mid-point of the overall downward move and as such is not the best location for entry.

One thing an entry in DUST at this level does offer is a tight stop. That stop would currently be the day's low at 28.60.

With that kind of tight stop.......it could be the case of in-today..... out-today.

Disclosure: I am long DUST.

Stocks: GDX