GDX, NUGT and GLD

Gold is a QE sensitive asset, although it has shifted correlations over the course of QE quite significantly at least once.

I really wanted to show you the GDX/NUGT charts, as I said earlier, if there were any Yellen pop above current levels, I'd be inclined to close short term trading position, however longer term GDX or NUGT core positions I prefer to keep open because of the charts that are consistent with the objective of those positions.

My earlier point above is gold should show some of the sentiment regarding Yellen's comments, but as with everything F_E_D or Central Bank, always beware the knee-jerk reactions. 

We saw this with the ECB's surprise rate cut a little over a week ago, we saw the knee jerk on ECB/WSJ comments yesterday and then very little from Yellen's pre-released comments last night, the point remains, the ECB  has had time to show the knee jerk and the rate cut failed after an initial knee jerk and even yesterday the Euro's knee jerk only lasted about an hour or two.

  Short term positive divegrence in GDX yesterday and the pop today, I'm a little uncomfortable with the support for this particular move.

 This is the intraday deterioration in GDX I just mentioned in the previous post, it's still intraday, but this is where new divergences start.

This is the 3 min, positive yesterday, popped today and really in line so far, if that 1 min gets worse, it will move to this longer 3 min chart and the probability of a pullback goes up, however those no accounting for Central Bank statements beyond what the market is reflecting or discounting above.

NUGT 3x long GDX (gold miners)

 This large positive divegrence and rounding bottom is EXACTLY why I want to maintain the NUGT core or GDX core long equity position.

 Shorter term, again a 5 min positive divergence and a fairly decent one should support NUGT, however I am a little nervous about intraday action. I haven't taken any action on trading positions yet, I'd like to give this more time to develop AFTER Yellen if possible.

 Yesterday's 1 min positive and today's pop which we have been expecting. However, intraday this is dull at best.

 Again, this 2 hour chart/positive NUGT divergence and rounding bottom, this is why I continue to like the longer term prospects for GDX/NUGT/gold miners

This is the basic look of GLD today, positives off head fake / false breakdown or shakeout, a leading positive yesterday and price pop today, however intraday action is again, at best, Dull.

Again, if there is a Yellen based pop from here in GDX especially and maybe GLD, I'd be very seriously looking at closing December Calls on such a move and regroup.