Miners are bouncing a bit today, but it’s unclear if prices bottomed. Volatility is high. I’d wait for signs of a bottom before attempting short-term long positions.
-GDX- I’m seeing some buying coming into miners this morning. I’m not sure if it will continue, but a daily close above $22.12 (yesterday’s high) would make a bullish engulfing candle and produce a short-term buy signal. Miners are volatile, so I’d wait to see if prices close above yesterday’s highs before attempting longs.
-GDXJ- Juniors need a close above $35.11 to suggest an interim low and short-term buying opportunity.
Once an interim low is confirmed, we will watch the bounce for strength and durability. Prices probably won’t exceed (close above) their respective breakpoints, but there is a 20% chance they might. I will try to update before the close if miners continue to strengthen.
Oil prices dropped back below the 10-day EMA, and it’s unclear where they will close today. I will enter 25% of my short positions on a daily close below $53.20 with a tight stop at $53.85.