While I believe in the long term for gold/GLD/GDX/NUGT (long), the fact is the GDX put was down around -75% and now around 6% and I suspect (as I said last night) we will see constructive pullbacks in all of the above to fill gaps and such, however while that's fine for a GDX long or a NUGT long (which I will keep open as a core long position), options have time decay and I don't think I'll get a better exit a week or two from now even at vastly higher prices as Theta burn eats away at the premium.
So once again, I will be closing GDX calls shortly (Today).
Some charts...
This is DUST (3x leveraged short GDX), it went through distribution and a price decline, now it looks like a reversal pattern with the head fake move and here's why I'm fairly confident of the head fake move...
This is the move, look at volume, that's the point of a head fake move.
The same volume is present in NUGT and the inverse 10 min negative divegrence is there confirming DUST, GDX has it too.
If I were in a TRADING position in DUST I'd probably close the long and re-enter on a pullback, but for longer term moves, I see no reason to try to trade around simple pullbacks.
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