This trading vehicle continues to perform beautifully and is now within pitching-wedge distance of the 53.20 rally target we’ve been using. Visually speaking, it’s hard to believe that, strong as it is, GDXJ is capable of replicating the Howitzer shot that took it from 35 to 51 in just eight trading days. Regardless, the fact that the 51.16 peak achieved on August 16 slightly surpassed the key June 6 ‘external’ at 50.76 attests to the brute strength of this rally. We’ll need to see a stiff pullback before we can gauge how much energy bulls have left, but as long as each new thrust on the daily chart continues to surpass a prior peak or two, bulls have little to worry about. ______UPDATE (August 27, 2:8 a.m.): Yesterday’s wicked selloff following a bull-trap opening is no more worrisome than the one that occurred in Silver Wheaton. It is not to be feared, and traders eager to climb back aboard need only look for the opportunity on charts of 5-minute degree or less. Many traders will have been freaked out by the steep drop, and that is what will make it easier for us to jump on the first impulsive pattern we see following a reversal from a p or D on the lesser charts.
