GDX

Any Hidden Pivots we might find would be superseded by visually obvious support near 36.60 that was created by a series of lows in mid-May.

We hold the June 43-45 call spread for 0.55, although our best opportunity to unload it for a gain may have come and gone when GDX topped last week at 45.10 after a two-week run-up from 35.7.  Let's shoot for a modest gain on the exit, offering the spread for 0.60, g-t-c.  That price is out of range at the moment, but it would become easier to fill if the stock moves higher this week.  It would be a lay-up to simply close out the 43 strike first on any strength, leaving the 45 naked-short, but we don't work that way, since not all subscribers' accounts are enabled for such allegedly risky transactions. ______ UPDATE: GDX rallied on the opening, pushing the spread up to 0.65 (i.e., at the same time the June 43 calls were peaking at 1.15, the June 45 calls we are short could have been covered for 0.50, their intraday high.  A fill at 0.60 was easily possible, so I'll record this one as a scratched trade -- in and out with no loss after commissions.

GDX looks bound for a Hidden Pivot support at 40.03 or lower over the near term. The provenance of this target is shown in the 15-minute chart -- and yes, you can bottom-fish there provided you use a tight stop-loss of about 5-7 cents. Like Gold futures, there are no compelling benchmarks we can use to tell whether GDX is turning around. Nevertheless, we can stipulate that this vehicle print 43.34, just above the high of Friday's gap-down opening, to give us reason to take encouragement. _______ UPDATE (1:15 p.m.): GDX touched a low of 39.85 in the first hour, somewhat exceeding the minimum downside objective proffered above. We should infer that a test of conventional support (in the form of some lows near 36.50 recorded in mid-May) is in the offing, but buyers could regain the initiative immediately with a thrust by mid-week exceeding 42.33. (Note: A two-day close above that number would be even more encouraging).

We hold two June 43 calls with a cost basis of 1.75.  Since there are  no longer any front-month expirations that we can short against our position, let's try to spread off the time-decay risk by offering two June 45 calls for 1.20, good-till-canceled.  Upside potential over the near term is to as high as 43.92 My apologies for letting this position slip through the cracks, since we could have further reduced our risk by shorting some May 43 calls.  The addition over the weekend of an Open Positions/Actionable Advice listing for Rick's Picks should help you and me both keep track of recommendations. _______ UPDATE (3:19 p.m.):  The short sale was completed today at the suggested price, 1.20 --  a nickel off the intraday high. We now own the June 43-45 call spread for a 55-cent debit.  Since it has the potential to go to a $2.00 credit, our risk:reward ratio is now properly adjusted and quite attractive.