GDX / NUGT Update

GDX's dip below the trading range last week was not as large as I'd expect for the repair on the 10-15 min charts and I talked about that in in Friday's GDX / NUGT Update

 The dip below the range is enough to trigger stops and/or to activate short positions as retail traders see the break of support as confirmation and short that break, this is what a head fake move is often good at achieving, momentum as new shorts are squeezed we have a momentum run from Friday and continued this morning, but also created the exact opposite as it moved ABOVE the range causing shorts to cover and new longs to step in, so the further GDX moves back in to or under the range, the more momentum it should do it with.

I still DO NOT like DUST even as a short term trade, even with expectations of GDX coming down, THE SIGNALS FOR A DUST LONG ARE NOT THERE AND I ALWAYS WANT TO SEE OBJECTIVE EVIDENCE.  I could go off the GDX/NUT charts, but they aren't the asset being traded, it would be DUST and as I said, the signals are not there.

 This is the 1 min trend view of NUGT (smaller trend) and it looks like the pop over resistance of the range saw no confirmation and likely distribution so I think it's coming down which is what I think it needs to do to resolve the 10/15 min charts and set up a solid GDX / NUGT long trade worth trading.

This is the 1 min intraday chart view, again no confirmation and it's heading down already, which as I said, in my view is good news because that's where it will be accumulated, either on a move down or below the range, not moving up.

The 2 min GDX chart confirms the NUGT 1 min charts above as far as intraday activity.

 Just for confirmation, NUGT 3 min also showing no confirmation and they should be coming down.

The 5 min chart shows the positive divegrence put together inside the range, each time there was a positive it's at the lower trend line and at the break below the range from last week. The negative divergence on this chart is negligible, but confirms the intraday / near term signals of the charts above for GDX/NUGT.

This is GDX's 10 min chart that looks specifically like there was a distributive move, enough to send GDX below the support of the range. This is one of two charts that needs to be repaired and go positive and the way that will happen is the accumulation of shorter timeframes on a move lower and/or below the range.

This is the same chart for NUGT with the same signal, there is VERY early signs of the kind of repair of this chart that I want to see, GDX coming down more should just make this chart look better and better, that's when I want to get long NUGT and possibly GDX calls and we should get a move that is not just up and down chop in this range, but is VERY substantial, substantial enough not to need any leverage although I'd still likely use NUGT and possibly some GDX calls.