This inverted pyramid is a basic representation of the
relationship that unites gold, GLD, miners, and leveraged ETFs. In my article
after yesterday’s closing, I wrote that I expect GDX to surge to in between
$21.00 and $21.50 today. That may or may not come true.
I see miners going up today if it is supported by gold.
While I’m writing this article, gold has just surged to about $1212. Will it
remain at this level, or will it go down when COMEX opens? I don’t know! But
here’s my strategy for today.
I have no plan at all to keep NUGT, or any gold stocks for
that matter, through the weekend. If you’re registered to my newsletter you
will receive my point of view about where gold is going next week. For today, I
will start setting take profits when GDX hits 21.10. If it goes down instead, I
will sell it when NUGT hits about $13.50.
Expect today to be very volatile, and don’t trust the
market, it may be full of surprise.
Have a good day trading, and make money!
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