I will post this chart. Though I like the price action in gold this is the only thing I don't like now. It is affecting our DUST, JDST trades. The miners doesn't want to fall. GDX is just dancing on the upper trendline instead of breaking into it. The volume is decreasing so it means to me there are less and less new buyers from day to day but the shareholders are not selling their shares.
I just want to warn you that this sector should be watched carefully. Someone posted a few days ago that miners are stretched too much above the 200 SMA. So it won't rally that much with gold. This is very true. Also it seems doesn't want to fall too much maybe just sideway consolidating. If gold is falling more and GDX is not moving just going sideways WE HAVE TO GET RID OF OUR DUST AND JDST EVEN WITH LOSS. :(
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Dont touch your DUST and JDST position today.
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Gold will fall tomorrow also, so there will be no problem wit hDUST and JDST. I just wanted to sign that we have to be very careful. If GDX is not falling with gold, and DUST is not flying- something is wrong and we dont want get trapped in the wrong position. It's just a possibilty but we have to be ready for this also.
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I would have liked to see GDX going back into the channel today. It didn't happen. It's not a tragedy. MAybe we open with a huge gap down at 23.50 tomorrow and everything is cool. Maybe big players are selling their shares to the big guys. They dont want to sell in panic. They postpone the panic by tomorrow....
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××× corrceted : Maybe big players are selling their shares to the small guys today.
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GDX and GDXJ is having a fake move on low volume. I think they will slam it tomorrow before the Brexit vote. And big players might be positioning in miner longs at the panic tomorrow or on Friday. Gold also looks wants to break down to 1240 tonight or early tomorrow.
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Billeci
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Last week DUST and JDST seemed to find any reason to rally while Gold was pushing higher. Based on last week's movement, today should have been closer to a 20% pop due to the breakdown in gold. Instead, today's price action was definitely weak.
pbartashevich
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Like Arpi explained in one of the comments before that is because big guys were selling mining shares first while keeping gold up artificially. I personally believe that they finished distributing mining shares last Friday. So this week will be a free fall. It is just started. All we need is good news tomorrow from Britain. GDX already broke its support just now. Technicals are terrible, can't go up.
Billeci
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Based on the behavior, it definitely makes sense (especially in lieu of the manipulation that takes place)!
marketpundit
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Just as noted by Chartwatchers, DUST is not really responding to recent price drops in GOLD. Most action takes place in the morning (US Markets), at leas for the last 2 days. During the second part of the day, DUST is not performing at all. GDX is not dropping with Gold dropping either. I am sure all will change after UK referendum vote tomorrow with results on Friday morning.
Personally, I am short gold through DUST. - expecting NO-Brexit vote. ))))
Billeci
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As you noted, marketpundit, at this hour it's wash, rinse, and repeat with DUST / JDUST. Continued weakness in lieu of Gold's price action.
pbartashevich
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GDX is lying right now. Major miners are much weaker: ABX, GG, NEM, KGC just a little above zero.
toothless
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Of note, I picked up DUST on 6-6-2016 @10.78 and 6-7-2016 @11.23 when gold was about 1240's. So DUST is up more relative to our current gold of 1265.
MC2016
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Thanks - this helps explain things. I couldn't work out why DUST was not flying as I'd expected with the downward movement of Gold. Perhaps some will start to sell GDX in the coming few days especially if a Bremain outcome looks more likely.
Billeci
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JDST performing much better than anticipated in the early hours with gold soaring overnight, but having pulled back. Potentially, the price movement is simply filling the gap, but would have expected a -30% crush (as it was doing in pre-market). Otherwise, the lack of strength / selling over the last few days may have cushioned today's blow and turn into a decent setup once gold settles out from the Brexit mania!
nnavarrete
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Hello Arpi,
For all of us that followed the initial short idea at 1240 and are currently stuck with DUST or JDST...
Would you recommend to keep it until tomorrow or take the loss today?
Gold is currently at around 1261. JDST should be at least at 13 dollars, but its currently at 10.90 - GDX and GDXJ are either being manipulated and all the retail traders are going long and the banks are shorting it and they will drop the bomb tomorrow.... or there is something shady really going on that might spike them tomorrow.. leaving all of us shorts with nothing in our banks.