Trade Idea: GDX /NUGT Long/add-to

Yesterday I clearly suspected a false breakout or head fake move in the market to the upside, while I've backed away from precious metals a bit and have preferred gold miners (as last week I added to GDX rather than starting a new position in GLD) purely based on signals (I still think gold acts in similar fashion to GDX and it has its own positives), I just prefer GDX.

This morning I suspected GDX was a head fake move, in this case a stop run and as you see me post quite often, the head fake move tends to be excellent timing confirmation for a move as weak hands are shaken out just before a reversal (to the upside in GDX) and we see this about 80% of the time.

Since the initial post today on gold miners/GDX/NUGT, the CHARTS FOR GDX/NUGT HAVE GONE INSANELY POSITIVE. FOR THIS REASON I'M PUTTING GDX/NUGT LONG UP AS A NEW OR ADD-TO POSITION. Furthermore, this has largely occurred in the same area that the market has started to give us information that the breakout moves yesterday were very likely head fakes as well and I expect GDX to move up while the market moves down and almost at the same time if not at the same time.

GDX (I have also confirmed these same charts with both NUGT and DUST)

 1 min keeps moving to a stronger leading positive divergence on what would be a head-fake/stop run. Also note the price pattern is very much looking like a typical reversal process and nearly proportional.

 The migration of the 1 min divegrence is seen on this 2 min chart which is flying.

The 3 min chart is also leading positive, these are EXCELLENT signals

Now we see intraday migration moving to the 5 min chart.

While I would not recommend averaging down on a losing position or violating risk management rules, I break them from time to time, however in this case it is not a matter of trying to average down a position at a loss, it is simply the signals are so beautiful, I have a very hard time ignoring them.

There is a GDX September $27 call I was thinking about adding to, this would be larger than normal risk management allows, I thought about adding to this position, however I have to look at this as a new trade/position, not part of an averaging down exercise.

I believe I will either open an October GDX call or perhaps even a NUGT position, it depends on liquidity, I will post any new or add-to positions before I make them as always.