Thanks, Daniel! Mining stocks are indeed in a bull market, so
the trade would be a counter-trend. In my understanding, a break of
the MA(50) is the key to note a weakness (pullbacks to the MA(50)
are bought, as you noted). GDX is below the its MA(50), which tells
me where the trend is going. Gerald Clifton had me learn to respect
the GDX as the index.
This is the first correction of the $USD since March, so it's a
different situation for all other pullbacks. The break of the
MA(50) occurred on the high volume, not seen before. You are
probably right that I should wait for a bounce and pounce
there.
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Thanks, Daniel! Mining stocks are
A trading question: is NXG a good short candidate?
Posted by junkie on 21st of Dec 2009 at 05:14 am
Thanks, Daniel! Mining stocks are indeed in a bull market, so the trade would be a counter-trend. In my understanding, a break of the MA(50) is the key to note a weakness (pullbacks to the MA(50) are bought, as you noted). GDX is below the its MA(50), which tells me where the trend is going. Gerald Clifton had me learn to respect the GDX as the index.
This is the first correction of the $USD since March, so it's a different situation for all other pullbacks. The break of the MA(50) occurred on the high volume, not seen before. You are probably right that I should wait for a bounce and pounce there.