GDX, daily
GDX, monthly
Summary
The mining stocks are catching a lot of attention right now. Across the last few weeks I've seen many call a floor for GDX.... all the way from the 25s to the mid teens.
Now we're back in the 18s..and no doubt across this weekend there will be the usual suspects.. floor calling. The issue with the floor callers, is that they believe the metals have floored.. which is frankly stupid.
Gold broke the 2013 floor ($1179) just last Tuesday. By definition, a new multi-week down cycle is underway, and one that could easily take Gold to $1000 within months.. if not weeks.
Without question, I see no clear multi-year floor in the precious metals... and by default... neither can the miners be said to have floored.
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A special mention for the 3x short (junior miner) ETF of JDST
JDST, 60min
Not surprisingly, today's decline was a fierce -34.3% @ $24.27 (JDST was trading in the $36s in pre-market.. just before jobs data).Having now filled the gap zone.. JDST has a fairly high chance of having floored.
As ever, price action in the miners will be largely depedent upon how the metals open. If Gold is higher by another 5/10 next Mon/Tuesday, then GDX will have a chance at back testing the old broken 2013 floor of $20.
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*As ever, the leveraged ETFs are for short term holds only, due to the statistical decay.. which right now is extremely high, with regular powerful day to day swings.
