Wednesday, March 12, 2014

THERE GOES DUST/GDX

Earlier today in a GDX/DUST position update I said,

"The question isn't whether I like the DUST long, I do, the question is, "Is this the best time and area with the highest probabilities and least risk to add to that position?" and I can't say, "Yes" to that question...(For GDX) However you've followed the concepts, what do you see missing on this 60 min chart that GLD is NOT missing this morning? There's a stage 3 top area, there's obvious resistance, what's missing is a head fake move though resistance.... (For DUST)...  I could be 100% wrong and DUST may be the perfect entry here, but from what I know about the concepts we see and the probabilities, the probabilities say, "Wait for the head fake move, this is too defined for there not to be one"."

Now take a look at the charts...
 Here's the trendline and obvious support, a little too obvious for me not to expect a head fake move below the area as seen above from earlier today. Look at DUST make its move under that area which I set price alerts for.

And volume picks up as stops are hit which is part of the reason of a head fake move.

I wouldn't go looking to buy DUST today personally, there still needs to be a sideways reversal process even on a small head fake move, but once we see that the short term charts 1-3 mins are building accumulation of all the stops they are hitting, DUST will likely make a fine add to or new long position.

We stuck with the concepts that are high probability and not even a day later there it is...

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