Gold Miners Update: GDX / NUGT / DUST

You'll have to excuse the charts, for now they are plain screen grabs as the normal software is re-initializing.

Yesterday GDX / NUGT (3x long gold miners) were featured in this post...

I liked them and in fact opened a GDX September $27 call position yesterday.

In the analysis of GDX which is the first link above, I showed several charts as my reason why I liked GDX for a short term move up, but I also showed a chart, in fact this one...

And I said this about this one chart (3 min negative)...

"This 3 min chart shows where there was heavy distribution in GDX/NUGT on the open of this week. Today's divergence here is odd, but it's confirmed in at least 1 of the other 2 assets (DUST/GDX), I have a feeling this would be for a head fake move."

And thus far this morning...

 Volume is there to suggest a stop run, now whether it's a true head fake or a real break...

It's early still and so far we have the 1 min intraday chart (where the divergence would first show up) leading positive so it looks like the stopped out shares that create cheap/available supply, thus far have been accumulated.

The longer, more significant probabilities and heavier underlying flow of the 10 min 3C/GDX chart shows as I did yesterday that we saw a head fake gap up on the open of the 27th that was immediately sold in to as 3C is leading negative, that's a head fake move and note it came right before a downside reversal. Since we have a leading positive divergence, so the probabilities already tell us that this will be a head fake/stop run in GDX, however until we have more charts beyond 1 min confirming it, we don't have solid evidence, furthermore there's an additional level at the orange trend line that could be hit as well.

I'll be looking for the 2, 3 min, etc. charts to go positive and confirm higher intraday probabilities that this is the head fake run I suspected we'd see in yesterday's analysis. IF THIS IS, I WILL BE ADDING TO THE GDX CALL (LONG) POSITION AND I THINK NUGT LONG WILL BE A MORE INTERESTING AND WORTHWHILE POSITION, STILL SHORT TERM AND SPECULATIVE THOUGH.