GDX / NUGT

Earlier today in the a.m. update a thought came to me regarding the minutes and a false GDX breakout before a pullback and the real breakout,

The Minutes are released at 2 p.m. if they weren't already leaked, judging by yesterday's trade activity, I'd guess they were leaked, which may have me reconsidering some positions I was considering such as NUGT, I'm thinking it may see a head fake move through resistance and then a pullback, but I'll wait to see if that happens and what underlying trade looks like if it does."

Then there was the afternoon update, GDX/NUGT Update which gave good reason to doubt the "breakout" of GDX/NUGT.

I've been watching both ever since for a hint the scenario described above may be on track, GDX and NUGT haven't had great signals and I don't think they'll turn on a dime, but Junior gold miners seem to be providing the answer and it looks like as I suspected above...

Just so you can see they are closely correlated...

 GDX (green) vs. GDXJ (red)- as you can see they are tightly correlated.

However, while GDX and NUGT are giving good intermediate signals suggesting a pullback and a failed breakout attempt here, this time any way, the shorter term intraday charts used for timing were less clear, however in Junior miners, the signals are very clear and are a perfect proxy for GDX.

 1 min leading negative in GDXJ

This has migrated to the 2 min chart as well as

The 3 min chart.

It's just now making its way to the 5 min chart, when we have a good divergence here GDX should be ready for a pullback and we'll take a look and see if a DUST long is worthwhile.