I had ‘crowdsourced’ GDX to subscribers who trade it avidly, but I’ll step up my technical coverage because of a cautionary post by a veteran bullion trader in the Rick’s Picks Coffee House. For what it’s worth, price action in GDX relative to Hidden Pivot levels has been unambiguously bullish, most recently with last week’s impulsive pop on the daily chart above the 29.58 ‘external’ peak of September 24. The chart projects minimum upside to at least p=31.33, and although the move may be other than straightforward, the target looks like an odds-on bet to be achieved at the moment. I’d suggest buying call options or stock only off rABC patterns or at targeted correction lows. For real-time guidance, tune to the chat room — or better yet, consider being a guide yourself if you trade this vehicle and understand the entry set-ups noted above. _____ UPDATE (Jan 6, 10:31 p.m. EST): The last four sessions have begun with bull-trap spikes, but if this is distribution, GDX has so far refused to die. My minimum target is still 31.33, and the presumptive rally to that number is sloppier already than I had imagined when I wrote above that it would not be straightforward. It’s worse than that, actually, since the miners barely budged with gold futures holding firm in the early going on Monday. We shouldn’t expect much help from the Ayatollah, since the stock market has already thumbed its nose at the threat of a global outbreak of terrorism. _______ UPDATE (Jan 8, 9:15 p.m.): A pullback to the green line (27.21, stop 25.97) would set up an attractive ‘mechanical’ buying opportunity for a shot at 30.90, at least. Trading Room denizens may be able to improvise a less-risky rABC entry that would use A=28.11 (12/11, daily chart), so stay tuned for real-time guidance. ______ UPDATE (Jan 14, 10:23 p.m.): GDX has taken off without deferring to our 27.21 bid. Getting aboard on-the-fly could be difficult, so I’ll ask for help crowdsourcing this task in the chat room. Post your entry strategy and I’ll be happy to vet it if I’m around.
