Elsewhere on the page I’ve raised the prospect of a $55 drop in the price of December Gold. The chart accompanying this tout (see inset) shows what a corresponding drop might look like in GDX, the gold miners ETF. The picture is visually compelling even though there was no precise bounce from the midpoint pivot at 26.37. We should infer from this that the selling is strong and that bears will not likely relent until the 24.31 target is reached. Bulls could nibble speculatively at the 25.34 ‘secondary pivot’ nonetheless, but this is a low-odds trade that warrants a stop-loss no wider than about six cents, assuming a bid at 24.33, just above the pivot. _______ UPDATE (September 1, 12:03 a.m. EDT): GDX touched a low Wednesday of 25.33, but the bounce so far has been too feeble to offer much encouragement. If you got long as advised, stick to the implied stop-loss at 25.27. If it’s hit, we should brace for more downside to 24.31, a Hidden Pivot target derived from these coordinates on the 60-minute chart: A=30.76 (8/18); B=26.64 (8/25); and C=28.43._______ UPDATE (September 2, 12:15 a.m.): The weak opening bar turned out to have been a bull trap, and it stopped us out for a small loss of $6 per round lot. The bounce is bullishly impulsive on the 30-minute chart, but we won’t chase it.
