It requires very close attention to trade this nasty little bugger, and that is why I am calling on Pivoteers to post away in the Trading Room if they see any opportunities develop intraday. The pattern shown offers a heat map for doing so, with a 36.90 target that looks very likely to be achieved. That’s evident from the way buyers impaled the 33.14 midpoint Hidden Pivot on first encounter. In retrospect, Friday’s wicked swoon to the green line was a great opportunity to get long with a ‘mechanical’ bid, but I was too busy with other tasks to do anything more than be awed by the way this vehicle’s canny handlers defenestrated bulls before getting out of the way of a short-covering panic. The lesson here is to realize that any feints lower are fright-mask tactics orchestrated to keep even true believers from making money on an uptrend that is strong, credible and all-too-obvious. _______ UPDATE (May 6, 5:40 p.m. EDT): Here’s a bottom-fishing strategy to consider if GDX continues to visit pain on bulls. If the trade triggers, I will establish a tracking position once two or more subscribers have reported doing it. _______UPDATE (May 7, 9:35 p.m.): The rally left our stingy bid choking on dust. The 36.90 target is looking good, but use a ‘dynamic’ trailing stop if you’re in from lower levels. That means shrinking the stop so that it is always equal to a third of the distance between the target and the current high. _______ UPDATE (May 10, 9:55 p.m.): The ‘dynamic’ stop would have triggered Thursday at 35.09, although this will have no bearing on the odds of the 36.90 target being achieved. If an opportune buying set-up presents itself we may be able to catch a ride, so stay tuned to the Trading Room if you care. _______UPDATE (May 11, 4:41 p.m.): GDX would generate a ‘mechanical’ buy signal at 33.14, using a stop-loss 31.88. This opportunity rates about a ‘6.6’ — mediocre — because of bulls’ very tired behavior lately. Once again I’ll suggest that you stay tuned to the Trading Room for real-time ideas, since it may be possible to reduce the $500 theoretical entry risk on 400 shares by as much as 80% using a ‘camouflage’-type set-up.
GDX – Gold Miners ETF (Last:33.91)
