The GDX robot covered its short position and went long at the opening price of 50.81. The initial stop is set at 47.94, just below last week’s lows. The first Money Flow protection level is 1.92 average day away from Monday’s close, 0.09% (porosity for today) below the average MF. There is no secondary position setup advised for today.

The RT GDX Model crossed below its higher 0% line minus porosity and went short intraday. As we advised in the forum yesterday, because the next protection level (same as the robot) is so near, it looks suitable to try avoiding a whipsaw and plan for a RT exit on a confirmed EOD robot exit. If the gap up was initially sold by large players and triggered the RT sell signal, Money Flow actually finished strong in the afternoon trading and I wouldn’t be surprised if the RT model will go long again intraday today at or above +0.09%.

GDX traded above daily R1 all day and it is a confirmation of a price trend follow-through to the upside. It was helped by the Bernanke speech giving an edge to the 0% yielding precious metal assets in a low interest rate environment promised for the future. According to Tom McClellan, this is happening right on time for a 13.5-month cycle bottom for gold that was due last week. The floor clusters are neutral to supportive and I think now is the time to sit on our long position and let the rest of the world discover at its own rhythm the trend reversal developing in GDX. If they leave us alone, we have comfortable protections in place.
The IWM robot remains desperately in cash.
Billy

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