Wednesday, May 21, 2014

Gold: Do The Miners Still Have A Pulse? (GDX; GDXJ; DUST)

Shorting the miners is the highest probability trade we know of, with the Juniors in particular being at risk. We've been saying we won't be at the bottom until we see some bankruptcies and that hasn't happened yet.
The Direxion Daily Gold Miners Bear 3X Shares is the highest leveraged of the bearish ETF's with the Direxion Daily Junior Gold Miners Index Bear 3X Shares filling the same niche for the little guys.
Gold is at $1287.50 down $7.10, the GDX is at $23.32 off 7 cents, DUST $25.80 up 23 cents and GDXJ down 23 cents at $34.58.

From Investing.com:
After experiencing a year of extraordinary volatility during 2013 the gold miners (Market Vectors Gold Miners ETF (ARCA:GDX)) have turned downright dormant during the past few weeks:

 GDX Daily
For 9 consecutive trading sessions the GDX has traded within less than a 2% intraday range and for the past two months GDX has remained well contained within a 10% trading range.

This is the lowest realized volatility on record for the Gold Miners ETF...MORE
Here's the risk for the Junior miner ETF:
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg6QHrtvEZEz8PMOWWtx1Cid7plFP3_tA9m_GzBgqUg8t6csvmzbNtfWVMXrB7zPglTzqAtmyHmzoL9J9wwSe5sAI8G0lQ0aQRAPNGk7vhyppvIecBbLv0q_OmP1Fnt5opfmurPh9Y01dvI/s1600/Chart20140520110726.png