Gearing Up for Another Attack

Despite what seems like many traders looking to fade the move in the precious metals and miners this week, the consolidations across the board in the complex have generally been benign, thus far. We know how volatile the complex has been, however, which means not assuming anything is also an integral part of managing risk in all trades taken. Still, the GDX, ETF for the senior gold miners, illustrates the benign consolidation. On the 30-minute chart, below, note the long basing action, holding the lion's share of recent gains. I retain a piece of a NUGT long from lower prices, and am still debating adding back if GDX can clear this base to the upside, ideally over $20.70. Elsewhere, natural gas is still trying to find some type of bottom. I have been sidelined there, but am watching closely for another UGAZ trade. Regarding equites, CMG has been a relative strength name among marquee leaders mentioned here in recent weeks. That stock continues to assert itself as a leader, today.