Confluences At Stake- June 25, 2012

GDX is now pressured by the former massive cluster support which became resistance last Friday. The strongest resistance is at 44.77 (YS1 and SS1) in confluence with the 50 dma (45.04). This opens the door for additional edges to the downside and allows for maximal position size/leverage as long as there is no daily close above the 44.77-45.04 confluence.
The GDX robot trailed its stop lower to 48.08.

[ATTACH=CONFIG]14858[/ATTACH]

I am sorry for the typo in my Friday’s comment where I indicated a short entry limit of 77.75 instead of the official 77.55 limit from the IWM robot page. The setup triggered and the robot did enter a new short position with an initial stop at 79.57. A secondary entry is still advised today at 77.51.

Futures are trading below the support line from early June but there is good potential support just underneath with the confluence of the 200 dma (76.09) and QS1 (75.90). A decisive break below that supportive confluence is needed for an acceleration to the downside.
Billy

[ATTACH=CONFIG]14859[/ATTACH]

Billy,

At what level of porosity will the GDX MF turn to a Buy mode?

[QUOTE=pdp-brugge;22891]Billy,

At what level of porosity will the GDX MF turn to a Buy mode?[/QUOTE]

0.136%


Pascal

[QUOTE=Pascal;22892]0.136%
Pascal[/QUOTE]

So the GDX RT bot is now long?

[QUOTE=DJones;22897]So the GDX RT bot is now long?[/QUOTE]

Yes it is .

[QUOTE=DJones;22897]So the GDX RT bot is now long?[/QUOTE]

It hit the BUY level, but the edges are weak and we therefore do not advise turning long GDX.

Also, do not forget that standard "Buy" signals offer fewer profit opportunities than Buy Oversold signals.


Pascal

[ATTACH=CONFIG]14876[/ATTACH]