Buyers decisively exceeded a 25.58 target that has been seven months in coming, implying GDX will move significantly higher once it has had time to catch its breath. I expect the correction to take 2-3 weeks, but any less would imply bulls are revved up and ready to shoot for a much more ambitious number, a 36.67 Hidden Pivot that looks compelling on the monthly chart (inset). Use its corresponding midpoint resistance at 26.98 as a minimum rally target for the near term (i.e., 4-7 days), and consider initiating a tightly stopped short if and when GDX hits 26.98. _______ UPDATE (Jul 10, 9:33 p.m.): GDX seems to have corrected June’s big blast more quickly than I had expected. The 26.98 pivot is still my minimum upside target for the moment, and it could stop the rally temporarily, but I am no longer recommending that you try to intercept by shorting there. _______ UPDATE (Jul 17, 9:35 p.m.): Buyers bulldozed p=26.54 of a clear ABC pattern, all but guaranteeing the rally will continue to at least D=28.54 over the very near term. Here’s the chart. _______ UPDATE (Jul 30, 10:47 p.m.): GDX has stalled since topping a week ago at 28.31, seven cents below my target. We’ll wait for the latest Fed “news” to happen before we make ready to buy calls. _______ UPDATE (Jul 31, 10:14 p.m.): If it continues just a little farther, this plunge would trigger a mechanical buy at 26.02, stop 24.52. As noted in the chat room, I’m bidding for out-of-the-money calls expiring Sep 6, predicated on the green line being reached.
GDX – Gold Miners ETF (Last:26.49)