GDX RT

[Pascal]

The GDX MF indicator was showing accumulation well ahead of the senate vote.


Pascal

19786

[Billy]

Particularly helpful has been the GDX RT MF respecting its 20D average all day long near the zero line except for a brief undercut and quick reversal at the low of the day. This was particularly important today as GDX itself was breaking under its own 20DMA. It finally regained it and closed right on it.
I went long yesterday soon after 11:30 at $28.53 when the PM MF regained its 20D average with a stop at the GDX 20 DMA which was $28.27 yesterday. Today's gap down below the GDX 20 dma made for a tough decision to sell or hold. The PM MF was so close to its own 20 dma that I decided to use a decisive break of the GDX MF 20dma as an exit signal.
But I only saw large players accumulating during the whole intraday consolidation leading to the final hour jump.
These last 2 days are providing much more reliable information than in August trading since the big boys are back in command. So far, I only can see patterns of accumulation both in GDX and the 20 DMF
Billy

19787
19788

[Pascal]

With GDX, one day is never the same as the next.


Pascal

19801

[Billy]

[QUOTE=Pascal;26392]With GDX, one day is never the same as the next.


Pascal

Gold is tumbling down while the USD is jumping higher.
Now, the net change in gold futures since Labor Day is decisively negative.
Under these conditions, GDX has little chance to easily regain its quickly rising 20 dma (now at 28.70).
The relative resilience of the GDX MF hints that some LT large players are not participating in the selling.
The key support area for GDX will be the 50 dma (26.56) rising near the 61.8% fib retracement (26.75) from August lows. That would present an interesting setup for a new long entry on some MF strength. I'm back in cash for now.
Billy

19803
19804