Thursday, October 17, 2013

GDX / NUGT (Gold Miners Long) Follow Up

GDX/NUGT (3x long Gold miners) broke out today, the NUGT long (equity) position is down -2% so it's moving in the right direction as it was down a bit more than that.

If you like the idea of gold miners, personally I think this is still a favorable area to get in as long as it's an equity long, whether GDX or NUGT, for an options position there needs to be a very specific and very well timed entry (for me).

I think there's a decent chance of a pullback in to some of today's gap which I'd check for accumulation, but I'm confident there would be, that would make for a lower risk entry.

I see GDX/NUGT as a longer duration position, not these trading around volatility shorter term positions.

 60 min GDX leading  positive with a nice reversal process.

15 min GDX leading positive

The 10 min saw good accumulation in that flat range and a nice leading signal, it should have made a higher high today, but these gaps get filled 90+% of the time it seems so that's an entry if you're interested.

NUGT 1 min intraday shows some negative activity suggesting a pullback or at least the start of that signal

The 3 min is in line which tells me we aren't seeing any strong sitribution, more likely just the kind you'd expect for a pullback.


The GDX trailing stops I have set at $23.25 and $22.80, I prefer the wider for a new move still in stage 1 and it gives more room for a pullback, other than that, I think the Risk:reward is attractive on a pullback with these stops.

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