GDX - failed bounce

Whilst precious metals opened moderately higher, the mining stocks caught a strong bid, with GDX reaching an intra peak gain of around 6.5% @ $17.69. However, there was a very sharp late day sell off, settling +3.1% @ $17.11.


GDX, daily

Summary

Suffice to say, mining stocks will remain under strong downward pressure so long as the precious metals are weak.

My broader downward target for Gold is the giant $1000 threshold (viable by year end).. and that would equate to GDX 15/14s.

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Notable, 3x short (junior miner) ETF of JDST...

60min cycle

A move into the 39/41 zone looks viable at the Friday open. There is one scenario of a move to 39/41... and then another wave lower to 33/28 on Monday.

Regardless, as with all leveraged ETFs, there are significant issues of 'statistical decay', and by definition are for short term holds only.