Gold miner (GDX) bulls and bears have been fighting in a crowded trade since late November.
This morning’s GDX retrace up (and now down) from yesterday is a case in point.
In such a choppy environment, inverse funds lose market value (downside bias) quickly and trades need to be avoided.
Meanwhile, on the other side of the market, biotech (IBB) has formed a top, reversed, and posted a new weekly low today.
An hourly trend-line has been formed as well (not shown).
If it holds as (or if) IBB declines past current support (~152 area), that hourly trend is moving lower at just over -96%, annualized.
Maintaining negative trend, with declining momentum on both daily and weekly timeframes is what we’re looking for.
The objective (not advice, not a recommendation) is to move stops (shown below) and maintain the trade until stopped out or trend break.
As of this post (1:03 p.m. EST), the current price of LABD and BIS are listed in the ‘Close’ column.
The “R-G/L” is from Dr. Van Tharp’s concept of Risk Gain/Loss.
Example: If $1,000 of capital was “risked” (entry-to-stop) on the LABD, position, that position is now up by 6.83-R, or $6,830.
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The Danger Point® 