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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: A Word Of Caution 0 comments
    Jun 12, 2014 2:41 PM | about stocks: GDX

    The Market Vectors Daily Gold Miner ETF (NYSEARCA:GDX) is going vertical.

    Vertical ascents like that exhibited by GDX typically represent one of two events: It is either short-covering or a genuine demand move that is launching into a bull market.

    The chart below shows the current price-action and the wedge that has been formed over a nine-month period.

    (click to enlarge)GDX: Daily Chart

    Chart by TeleChart

    For this to be a genuine move higher, once the trend-line is contacted for the test, GDX needs to stay there for days or weeks (or penetrate to the upside).

    Note that the gold price is lagging behind GDX. For now, this is a non-confirmation of the move.

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: GDX
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