I’d suggested bargain hunting if GDX pulled back on Friday, but the correction was steeper than I’d anticipated. Even so, if you bought calls toward the end of the day as advised, you were in at prices that were just a fraction of what some had paid when GDX was peaking on Wednesday. I am not establishing a tracking position because reports of fills by subscribers were vague. However, if a rally allows you to exit some of your calls for 30% more than you paid for them, you should do so. Alternatively, if GDX continues to fall, breaching the 27.61 low recorded on 8/19, we’ll consider a ‘counterintuitive’ buy. Stay tuned to the chat room for further guidance on this. _______ UPDATE (Sep 10, 9:02 p.m. ET): We took a flyer on the CI trade noted above, but it proved to be a dud, and so I suggested exiting it for a small loss of about $15 per round lot. We’ll back away for now, since GDX looks like it needs more time to base for the next rally. _______ UPDATE (Sep 16, 9:08 p.m.): GDX has been base-building as anticipated. I’ll be more enthused about buying if it breaches the 26.04 low in the chart, but please note that a print at 27.83 would trip a theoretical buy signal for a shot at 31.52. (120-min, A= 26.04 on 8/1). ______ UPDATE (Sep 18, 10:24 p.m.): A moderate rally has tripped the buy signal noted above, but without generating any heat on the follow-through. I’d suggesting spectating for now, subject to whatever opportunities develop intraday.
GDX – Gold Miners ETF (Last:27.59)