Less, Does Not Mean, None

When you’re at price extremes whether up or down, many times the ultimate direction is unknown.

You’ll know when you’re at that (on-the-edge) spot, if it’s like Wyckoff’s description from over a century ago:

‘It’s as if the weight of a feather can move the market in either direction’

The good part, today’s potential-now-actual scenario, was previously covered in this update:

“What we’re looking for in the coming week (best case) is to see continued GDXJ, upside to close the distance to the resistance area; thus reduce (but not eliminate) the risk.”

Junior Miners, GDXJ, Weekly

Actually, the risk is probably less than the 0.82-pts shown.

Price action would need to continue through resistance (blue line) to get to the stop; possibly giving ample time to exit a short if so positioned (not advice, not a recommendation).

As can be seen in the side-bar, a short has already been opened; executed early in the session using leveraged inverse fund JDST.

Trade: JDST-25-02, with stop at today’s low (not advice, not a recommendation).

Against The ‘Spin’

Positioning short is against the current mainstream ‘spin’ on why this sector has not launched higher.

You’ve heard it before, they call it a ‘buying opportunity’

This site refers to the non-confirmation of the miners (with gold at all-time highs) as “something wrong” 🙂

We’ll know soon enough.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279