GDX ended the week strongly on the upswing. I’ve been eager to stock up on call options ahead of the next big move, but we’ll be better served attempting this on weakness. Gold itself is still in a corrective pattern, and although the futures could break out as early as Monday, chasing gold above Friday’s highs looks like an unnecessarily risky bet. Straddles have been getting hit hard lately, suggesting that unhedged calls may be the best way to go when the next buying opportunity comes. For now, though, use the 29.03 midpoint pivot as a minimum upside target. We should also be alert to the possibility of a ‘CI’ short developing. If Friday’s 28.69 peak holds, a sell signal would trigger at 28.17. _______ UPDATE (Sep 23, 5:19 p.m. ET): GDX gapped up on the opening and continued higher, leaving timid bulls choking on dust. I will formally recommend trades here to get long only on weakness, but you should tune to the chat room for serendipitous intraday call-buying ideas if that works for you. My 14:31 post in the Coffee House was an example of this. _______ UPDATE (Sep 24, 9:34 p.m.): Weakness on the opening bar demonstrated once again that selloffs in this vehicle are to be regarded as a buying opportunities. My immediate target remains 29.99, posted mid-day in the Coffee House (30-minute, A=27.86 on 9:20 at 12:30 p.m.).
GDX – Gold Miners ETF (Last:29.49)