Wednesday, February 26, 2014

GDX / DUST Trade

Like GLD I think GDX (Gold Miners) is likely headed to the lower end of its range. I have a DUST (3x short gold miners) ETF position open and it's already green, but it's still very low in the base area and has not moved to stage 2, I'd still consider a D?UST long or GDX short in the area, especially with GLD confirming.

Here are a few charts.

 Long term I think GDX, like Gold will probably be an interesting long play, but for now I think it's heading back down toward the low $20's/$20-ish. Look at the leading negative on the 60 min chart here. Then look at DUST's 60 min leading positive, that's confirmation.

GDX near term for timing, 5 min also leading negative

DUST near term 3 min leading positive

DUST 5 min leading positive, thus I'd have little trouble taking a long DUST position in the area.

DUST 30 min leading positive
And I don't even have to point out the leading positive on DUST's 60 min chart.

I like the DUSt long or GDX short (or puts even).

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