18Mar3:11 pmEST

Probing the Reaction with Patience; Chess Moves

I just went long NUGT at $10.25 with a protective stop-loss below $9.75, playing the gold miners via this triple-long ETF (derived from the GDX ETF) for a rally. 

Playing the initial reaction to a major "Fed Day" can always be tricky. But so far it looks as though the Dollar's weakness is leading to strength in commodities. 

To be sure, gold miners are still in bear markets, needing to reverse that major trend. But playing rallies in bear markets can be extremely profitable. If you have been following my work for a while, then you know I have taken advantage of these opportunities since 2013 with profitable albeit quick longs. 

Here, the long-term case for the GDX responding to its 2008 crash lows, seen below on the monthly chart, is still very much in play. 

I am putting out a feeler here that the Fed headlines today provide enough of an excuse for another snapback rally. As always, I will be quick to cut if I am proven wrong. 

The First Move After the Fed... A Day of Inter-Market Confro...

 
BackToTop
 

This website is intended for educational purposes only. | © 2020 MarketChess.com | All Rights Reserved | Website design by Saco Design | Superpowered by Site Avenger

mobile site | full site