Gold miners are off on a parabolic move this morning, I don't trust parabolic moves, I've seen too many of them end with the same volatility in which they began and it doesn't matter if they started on the upside or down.
I believe there's at least a put or a dust long that is maturing right now, I'll show you on GDX and then use NUGT (3x long gold miners) and DUST (3x short gold miners) as confirmation.
*This post is NOT inclusive of Junior Miners (GDXJ).
GDX
the intraday charts are negative like this 1 min in to the move.
The 2 min is showing migration of the divergence which gives the divergence more credibility and shows it growing more serious.
The 3 min chart is intraday and leading negative,
it looks pretty clear that this run in miners has been seeing distribution.
There's now the matter of the proportionality of the reversal process which I'd say is pretty close for a parabolic move and there is the 5 min chart which would probably be my standard to open a put position or a leveraged short position like DUST long.
The GDX 5 min chart on an intraday basis is in line, this is what I'd like to see turn negative.
The longer term 10 min chart is already negative so it almost looks like this parabolic move is a head fake move. Note also the clear delineation between the 4 stages starting from left to right, 4) Decline, 1) Accumulation/base 2) Mark-up 3) Distribution.
NUGT (Gold miners 3x leveraged long)
The 1 min NUGT chart confirms GDX perfectly.
As does the 2 and 3 min above.
And the 5 min is in line just like GDX.
The longer term 10 min looks just like GDX with the 4 stages of a cycle.
DUST (3x leveraged short Gold miners) *For confirmation this should look nearly the mirror opposite of GDX and NUGT.
The 1 min chart leading positive confirms
The 3 min chart leading positive confirms
The 5 min chart in line confirms PERFECTLY.
This one is on my radar for a potential trade if we can get that 5 min to turn negative.
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