GCEventsmoveGDX

World Events Move The Gold Trade. Not Chart Indicators

AMEX:GDX   VANECK VECTORS GOLD MINERS ETF
772 6 0
The GDX             equity trade is a proxy for the GC             futures contract with very little divergence between the two.

I recommend that you have a futures account so that you are following the GC             contract absolutely live. I believe the pit opens at 8:30 EST. and closes at 2:30 EST. The GC             contract trades about 22 hours a day. I do not recommend trading futures to the individual investor. Put the account on simulator and leave it there.

Follow the daily price action TREND and only trade in that direction scaling into your position on a five minute candle. At times the GDX             will diverge to hit stops. This is generally soon after the open, so scale into the position if you are day trading. Yes, sometimes it just tears away and leaves you in the dust, so that is when you want to wait an hour and scale in on a pullback.

Price action is caused by external real world events such as FOMC meetings, inflation , political conflicts and monetary distress worldwide. These are legitimate concerns that turn investors to or from the safety of gold             .

Holding a large position overnight is not recommended and is only to be done with risk capital.

I have noted on the chart the swings that I have traded in the last eight weeks. As of this writing I have a short position in GDX             .
















March 24, 2014 Daily chart notes. As I outlined above, there was a divergence to hit stops soon after the open. The bottom was out of the tub on the GC contract. This was a no-brainer trade. I am still short GDX.
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We added to our short position with Gold at 1310 just before the open. No events seducing people to the safe haven and good durable goods numbers. Hang on for the ride.
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March 26, 2014. The current GC contract held up just over 1303, perhaps due to Mr. Obama's comments in Brusseax about our friends further east. The red indexes may have flushed individuals back to the yellow metal as well. The miners on the other hand diverged from this rebound and continued in their embedded stochastics.
The metals finished with an above average volume green candle, but the price did not hold.
Keeping our ears to the ground for any bad news, otherwise staying short.
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March 27 Pre-market. GC is down to 1295 overnight. The big players want to be in our positions and will try to hit our stops to do so. Depends how much heat you can take.
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March 27 Post market. You may call into question my theory that the miners move with the metals. Do what you must. I am going to chalk todays GDX divergence as a classic dead cat bounce. Your thoughts? Please comment.
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March 28, 2014. Trade action was wicked to the upside for the miners. Hope you kept your stops tight on the short side. Let's consider this move up simply as reloading for the downside when the Russia-Ukrainian fears diminish. Flat for the weekend.
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