Quick observations

Since there isn’t much movement in the markets today, and I am just waiting for possible fills on some limit orders to buy or add to positions, I will take a minute to show you what I think happened with miners this morning. After a nice gap up, they sold off all morning until now, actually going into the red on the day. Luckily, we only starting buying a few minutes ago, because we use short term intraday charts to time into and out of trades, and we waited until they got oversold before hitting the buy button, so we got some good prices on a couple items already. Members should have received Trade Alerts to their email which tell them what stocks, how many shares and prices paid, but should also check the Stops tab to see new position sizes, as well as the Daily Account Screenshot we post after the close of trading each day. This is the best way for people to get the most accurate and useful information a trader needs.

Moving on to today’s odd action, I can only figure that it was the gap up leaving GDX right in the face of a double moving average (50 and 200 day) resistance. On top of that, the moving averages are sloping lower which is OK but not ideal. Even worse, the two moving averages are making a death cross lower! Keep in mind all this is occurring on the daily chart, so it can change quickly, as in a few days. We are invested on WEEKLY and MONTHLY signals, so we have to ride through adverse moves on daily charts as we keep our eyes on the prize, the longer term trend higher. Here is the daily chart of GDX with a recently broken steep downtrend line (good), and now starting a small uptrend that we would like to see extend.

So that is my best guess as to why GDX didn’t hold it’s gains today (as of 11:30 am, it could change by the close). Rather than worry or obsess about it, the best thing an experienced trader can do is use the weakness as an opportunity to add, especially when we see a possible reason for the adverse action. It might take a few days to work through this resistance, or it also would not surprise me to see buyers step back in and push miners up again into the afternoon. That is why we took advantage of the push lower to add at overold technicals on the intraday chart.