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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
  • GDX: Up Against Resistance 5 comments
    Jun 10, 2014 4:51 PM | about stocks: GDX

    Today's action might be the beginning of a sustained sign of demand for the Market Vectors Daily Gold Miner ETF (NYSEARCA:GDX), or it may simply be a test of the breakout from 5/27/14.

    Just as a forecast was provided in this link for the anticipated down-move, one should also be able to provide a forecast for a move higher.

    If we have a reversal at hand, the GDX will most likely not go in a straight line. The chart below shows a probable scenario if today's action was a continuing reversal and not a test:

    (click to enlarge)GDX Weekly

    Chart by TeleChart

    Note that today's exit represented a small loss while the majority of the position in the Direxion Daily Gold Miner Bear 3X ETF (NYSEARCA:DUST) is still well in the green.

    Disclosure: The author is long DUST.

    Stocks: GDX
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Comments (5)
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  • almoni
    , contributor
    Comments (99) | Send Message
    Why - my friend - you don't talk about 6 - 9 month 4cast ?
    lets see whole picture - not only 3 $ profit / ha-h
    11 Jun 2014, 07:50 AM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (120) | Send Message
    Author’s reply » Hello almoni,


    Anything can happen from day-to-day, so a forecast is not really useful.


    What is done is to monitor "pressure". Is there buying pressure or selling pressure.


    If the DUST position resulted in a $3/share gain, that is a profit and it allows one to have capital to trade another day.


    This approach is 180-degrees opposite of what the public general does....... we do not look for a "reason" why the market is behaving the way it does. Reasons always come out later as press releases or market news.


    It was anticipated that the gold sector would decline into a wash-out event. That may still take place. However for now, there are better opportunities.


    The latest update shows that there is selling pressure in the real estate market.


    So, we go with the pressure and disregard news, corporate releases and any other type of distraction.


    The result from using this approach as you can see is profit. :-)


    Thank you for the note,


    11 Jun 2014, 04:53 PM Reply Like
  • almoni
    , contributor
    Comments (99) | Send Message
    I am not too much believe in conversations on death of PM sector. my plan to wait for 10-15% of decrease and to buy $GDX with 40 % profit target.
    12 Jun 2014, 05:21 AM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (120) | Send Message
    Author’s reply » Good morning,


    The PM sector might have a brief down move towards $1,000 before it is ready to move higher.


    How do you decide if it has decreased far enough to buy?




    12 Jun 2014, 07:43 AM Reply Like
  • almoni
    , contributor
    Comments (99) | Send Message
    I write about PM mining sector instead of about gold as metal lets watch 15 years graph and use level Fibonacci for choose buy area \ gdx etf \
    12 Jun 2014, 08:14 AM Reply Like
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