As expected, this morning’s GDX action is testing yesterday’s wide price bars (shown on hourly chart).
The daily chart of inverse fund DUST is below:
The last report was posted a few hours before close. Afterward, GDX pushed slightly lower towards the bottom range of support.
That push lower in turn, lowered the retrace targets accordingly.
This morning’s upward GDX spike was a gift (as of 10:51 a.m EST) and a signal to go short via DUST (not advice, not a recommendation).
It’s important to note that all of this action is taking place during Christmas week; no one is looking.
The firm went short GDX at DUST: 20.09, early in the session. Hard stop for DUST @ 19.69; not advice, not a recommendation.
Price action pushed slightly lower (to DUST 19.91, so far), before reversing.
This is the danger point. If the hyper-inflationists are right, it won’t take much of a move in GDX, to find out.
If we are in a deflation scenario, expectations are for today’s test levels to hold and for GDX to continue lower (DUST higher).
Separately, XOP is testing and filling the gap left from Monday’s open.
If XOP reverses from here, the DUG stop could be moved up to today’s low (thus far) at DUG: 27.75.
Charts by StockCharts