• It looks like gold and miners are breaking lower; downside selling pressure has accelerated.
  • Miners are well below their previous gap levels. Depending on today’s close, it looks like we have an exhaustion gap sell signal.
  • Last weeks increased stops performed well and got me out of NUGT and USLV.
  • I have open swing trades in DUST and UGAZ.


-GDX- Miners are below yesterday’s low and decisively below the $22.43 gap. Persistent selling into today’s close would establish an intermediate cycle top in my mind. If confirmed, I expect a minimum target of around $20.60.

-DUST- If gold and miners confirm an intermediate-degree top, DUST should at least come back to fill the $24.00 gap. That would equate to an approximate 30% – 40% gain in the DUST trade. I’d like to see prices finish firmly above $19.00 today.

-UGAZ- I raised my stop on UGAZ to just below $32.00 yesterday. That will lock in a small profit if prices reverse lower from here. A close above $35.67 would quickly target $40.00+.