Quick GDX/GLD Update

Last week we saw some initial signs that the long awaited pullback in GDX and GLD as they are pretty tightly correlated, may finally be getting ready to wind down which in the big picture, was what we were looking for as GDX looks like it could be a long term primary uptrend candidate with over a year long base which initially failed right at the breakout day, the same day we closed our 3x long GDX position, NUGT.

In any case, I closed the DUST long just because I suspect we'll see more and more lateral trade in the coming days in GDX as it likely puts in the pullback base we wanted to buy for so long which would be the second large primary GDX/NUGT long, at least as originally planned and we are in the area we expected GDX/NUGT to pull back to.

Thus far, things are slow, but moving in the right direction.

 GLD 5 min leading positive which is a good sign we are on the right track, I'll feel more comfortable with this being the probable area once the downtrend line is broken and GLD/GDX start moving even more sideways or a rounding bottom or a "W" like bottom.

 GDX with a negative divegrence sending it lower and positives at lower levels, we want to see price move more to the side like the green arrow.

NUGT which is the 3x long GDX ETF also with a nice divegrence developing.

And DUST , the 3x short GDX with a big 15 min negative divegrence developing.

This "could" be one of the biggest primary long positions I take on, looking for a year+ long uptrend after the base sees a solid breakout and this is what we've been waiting for since July.

I would NOT, enter GDX or NUGT long on a new trade here yet, they may have reached the end of the pullback, but they need to proove that they are being accumulated in size which is the same plan we had in July when we expected a pullback in all 3, let them prove it and I think they will.

As far as SLV goes, this one still, after 6 years looks like its being manipulated. I wouldn't touch silver with a 10 foot pole unless it really jumped off the chart, until then, I would assume it's just being manipulated to the downside, I would not try to catch it as it looks to be a true falling knife. If the situation changes there enough to overcome the manipulation concerns, I'll update that one, but compared to gold and GDX, it has really been knocked around a lot harder.

Just keep GLD and GDX on the radar, these are positions , especially GDX, that I have been very excited about for a long time as I do believe a primary (bull market) trend is possible in these two with miners leading gold as they did before QE started 5+ years ago.