GDXJ Resistance level held today, entered leveraged etf JDST at 56.74 with a stop loss at the day's low of 55.82, which is GDXJ's high of 30.31. Contrarian position due to bullish sentiment in XAUUSD, and bearishness in the dollar, but resistance was tempting enough to enter at with a tight stop. Factors to determine success or failure. Recent high of 30.31 is not broken. XAUUSD begins to trade within 20 day bollinger bands and relieves overbought conditions by selling off again tomorrow 10/16, VIX continues to go lower from the recent high of last week, and the dollar DXY establishes a bear trap and moves to retest its prior high. if JDST opens lower than its close or GDXJ opens above 29.79 half of the position will be exited, with the remaining sold at the stop loss. DUST entered as well, larger position in JDST due to greater weakness in Junior miners.
Comment:
Max pain of 27.50 from 10/19 option chain, which still has a bullish put to call ratio of 0.46 will be looking for a increase or change to bearish sentiment to confirm with a target of 28.
Comment:
Put to call on GDXJ turned bearish 2.09
Comment:
JDST position closed today at 60, Dollar has gained strength, VIX and broader markets have not gone anticipated direction, and consolidation has occurred over the last few days, with a break in XAUUSD hourly channel resistance, potential move upward is now anticipated so short position was exited.