GDX Update

GDX is showing an interesting move, the signals have been there as I showed in yesterday's "I do not ignore charts like this" update, so I see no reason why it shouldn't reverse other than the reversal process, but if the signals are there, that'e what the reversal process is all about, giving the asset time to acquire those signals which is just a function of the size financial firms trade in.

So far...

 This is the 3 min chart, this was the key yesterday to whether I open a NUGT long (3x long gold miners) equity position in addition to the GDX calls.

I typically prefer options for trades I expect to be very short in duration or are just at excellent areas for that type of trading tool, I prefer equity, ETFs for positions I think will last longer and have the profit potential without the need for the kind of leverage options offer. If I think it's a reasonable chance the trade will  last long enough to acquire significant profits, I'd rather be long the stock or ETF than the options.


 This is a closer look at the same 3 min chart as above.

And of course the 5 min.

I don't need to update past this because all of the charts are the same or better than yesterday's update, it's only the shorter term charts that would have had time to change since the last update and they have done so in a positive way.

I'll still be watching the 3 min chart and its interaction with price to decide whether to open a long NUGT position today.