GDX is having a difficult time getting past the 31.89 ‘secondary’ resistance of the bullish pattern shown. We’ve been fixated on its 33.37 target for weeks, and this is starting to take its toll on our patience. However, bears haven’t made much headway either, and the ability of this vehicle to hang tough on days when gold futures have been weak is mildly encouraging. On balance, I’ll suggest placing a ‘mechanical’ bid for 400 shares at 30.41, stop 29.42, day order. _______ UPDATE (August 15, 6:59 p.m. EDT): The order went unfilled, but I’ll now suggest leaving it in for a couple more days (i.e., until Wednesday’s close). _______ UPDATE (August 17, 7:47 p.m.): The stop-loss I’d advised survived yesterday’s vicious swoon, so I’m establishing a 400-share tracking position with a 30.41 cost basis. Leave the stop where it is for now. The bounce from the low tripped a theoretical buy signal at 30.56 that is associated with a 33.20 target, but we won’t be able to breathe easy until such time as the stock pushes above the red line, a midpoint Hidden Pivot at 31.43. _______ UPDATE (August 21, 1:15 p.m.): Gold can’t seem to get out of its own way lately, and rallies continue to disappoint. Stick with the stop-loss given above for now, but if it’s hit, I may try to re-establish the position on the next promising upswing. It will come, but not necessarily on our schedule. _______ UPDATE (August 22, 10:30 a.m.): This morning’s gap-down opening stopped us out of the position for a $396 trading loss, and good riddance! We’ll try again when prospects look better.
