GLD Up, GDX and NUGT pop on Perfect Head Fake...CITI?

You hear about the reversal process a lot and the head fake move (in this case to run stops and suck in new shorts on a break of support), but here's a picture perfect version of a stop run execution as we have been expecting both GLD and GDX to make gains since mid last week when accumulation was gaining quite a lot of ground with this post, Trade Idea (Swing) NUGT Long , Trade Management: Adding 25% to Yesterday's NUGT Long and the follow up charts GDX , NUGT & GLD Charts as well as the most recent follow up $USD / GLD / GDX Macro Trend from yesterday as well as last night's Daily Wrap.

GLD is up +.90% this morning, GDX up 1.52% and NUGT up 4.24% this morning.

Here's the head fake move that breaks clear support in the reversal process on huge volume.

 A typical rounding bottom, the head fake move is almost always there (I'd estimate 80% of the time no matter what timeframe or asset you trade, as long as its in a reversal process), the more obvious support/resistance are and the more visible the asset, the more likely the move will appear and they are almost always just before a reversal like this one. Note the huge spike in volume and that's not just the consolidated tape as you'll see on a 1 min chart.

 GLD didn't have as defined of support and likely not the same amount of sell orders below, this is why I never put orders in with brokers in advance, but execute when I'm ready, the less they see the better.


 NUGT and GDX's longer term charts recently improved quite a bit as they have been and still are stuck in a limbo area just at their nearly year long bases's neckline.

This shows NUGT accumulating shares stopped out on yesterday's head fake move.

For now all 3 assets are moving toward intraday confirmation so there's not a lot to do with the NUGT long or GLD long if you took either of the positions, I'll check in on them in a bit and see if anything has changed, but with 30 min positive divergences and even 60 min positives, they should have a decent run in front of them which is very ironic considering yesterday's CITI related post, $USD / GLD / GDX Macro Trend ...

"This morning CITI came out and let everyone know that they sold their $USD positions fearing a sharp decline after the $USD just had an incredible week (last week)....I thought this was interesting for a few reasons, 1) we saw some underlying weakness in the $USD last week and 2) we saw underlying strength in both GLD and GDX (gold miners which share a tight correlation to gold). In fact, last week we had Trade Idea (Swing) NUGT Long and the next day, Trade Management: Adding 25% to Yesterday's NUGT Long.

I think what is going on here is a bit larger then the knee jerk moves on CITI's news this morning, and smart money doesn't disclose their positioning unless there's something to gain form it, whether long gold already or looking to pick up $USD at cheaper prices, whatever the case, CITI was out of the $USD before making that known to the world this morning."