Get Right … Sit Tight

That was Livermore’s adage nearly a century ago.  Find conditions for a sustainable move and get in.  Then wait and wait some more.

Going on, he states that is was not the thinking that made him money … it was the ‘sitting’.

The short entry on GDX was initiated with DUST (2X Inverse, GDX) at DUST 18.86.

Initial stop (not advice, not a recommendation) was very tight at the session low, DUST 18.45. 

Price action the next session (yesterday) pulled away from entry levels and the stop was moved to 18.56.

Today’s pre-market session (8:54 a.m. EST) shows continued downside for GDX, with DUST up correspondingly. 

If there’s a higher close in DUST, we’ll move the stop again.

With the overall markets, S&P 500, Dow, NASDAQ, at or near all-time highs, the precious metals sector seems to be leading the way lower.

If the rest of the market reverses, downside action in the mining sector could be dramatic indeed.

In other markets, it appears that Peabody Energy (BTU) may have finally found its low; from top to bottom, a -98.33% decline. 

Analysis of BTU to be forthcoming before the end of the week.

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.