GDX (Gold miners) as well as NUGT (3x long gold miners) were both new or add-to positions late last week as I believe they are headed higher, it would stand to reason that GLD and probably SLV would head higher with GDX, but in all honesty, I like the signals in GDX and NUGT better than GLD and since I base my decisions on objective data, not "Should, could, or usually", I chose to add to a GDX long/call position.
Interesting as the leading negative divergences that I just showed you in Index futures and other places popped up right at the level that would be considered a failed break out attempt and have serious consequences near term for the market to move down quickly and strongly, at the same time, GDX, NUGT and DUST (3x short gold miners or the opposite of NUGT/GDX) were all putting in their own signals.
As of where each stands right now, I still like GDX or NUGT long, I prefer the added leverage of options, but NUGT long has 3x leverage and is a decent choice in my view as well.
GDX 1 min intraday, note the sudden and very strong leading positive divergence recently.
Also note the 2 min leading positive divergence as well, this shows migration of the divergence and means it's likely not some random signal, but a developing, strengthening trend in 3C.
NUGT should give the same signals as GDX, note the 3 min leading positive divergence today in to the afternoon
The longer timeframes were already in line and this is why the GDX position was opened and added to last week, this is still exceptionally strong.
DUST is the opposite of GDX and NUGT, it a 3x leveraged GDX short or the opposite of NUGT, therefore for confirmation, the 3C signal should be the opposite of GDX and NUGT, the 3 min chart shows that happening this afternoon
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And the longer term DUST 10 min chart is leading negative, again confirm,ing the long in GDX and NUGT/
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