Thursday, September 5, 2013

GDX Add-To

I'm looking at adding to yesterday's GDX Sept. $27 Call. Earlier today, I updated GDX I mentioned the chart yesterday that made me suspicious that we may see a stop run (lower) before GDX can move higher and in today's update I identified that level as being below the recent low of $27.54 on 8/29. We have seen a run below that level, volume swelled as if stops were hit, it's still early as it just happened not too long ago, but initial indications are that those stops are being accumulated.

It's also a very parabolic move, I don't trust parabolic moves to do anything but return in the opposite direction in like manner (parabolic).

This is still a spec. size position, I wouldn't go chasing positions like this (1-2 days trades) in any size.

NUGT would be the long equity way to play it with 3x leverage or just GDX long

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