Long GDX - February 17, 2012

[Billy]

The GDX robot will enter a long position at the open today with a stop 5.92% below the entry price.

The GDX MF issued its buy signal yesterday at 11:48 AM with GDX at a price of 54.02. Hopefully you have been able to enter near that price watching the RT GDX MF and reading Pascal’s alert.

The signal was particularly strong because the 30 min bar coincided with a break of the volatility stop, the 5-day VWAP and the 50-day moving average. Volume on the triple leverage NUGT was especially huge and already at a pocket pivot level (higher volume than on the highest down day volume over the past 10 days).

I suggest that you keep monitoring the moving VWAP anchored at the 12:00 bar, currently 9 bars away on the 30-min chart, incrementing by one every 30 minutes, to see if it holds as a moving support during dips. Quarterly pivot (54.78) looks like an important level for Friday on a closing basis.



Ahead of next week’s 4 day sessions, shorting signals must still be avoided on IWM. Without the strong 20DMF calming down, IWM shouldn’t have much difficulties reaching soon the second resistance cluster (86.45 – 87.15). The higher limit of the cluster is Quarterly R2 (87.15) and remains the most likely next significant topping level since Quarterly R1 (80.45) was successfully tested pre-market (in the RUT Futures) yesterday and price jumped decisively higher all day long from there.
Billy