GDX Robot and RT model - March 21, 2012

[Billy]

Yesterday’s GDX gap down was convincingly bought by large players and seems to have been a last shakeout of weak hands and of a certain over-leveraged Billy before a possible “ from false moves come fast moves” reaction.

The PM Money flow closed at -0.54%, just shy of a declining average money flow at -0.23% before Wednesday’s open. If large players do follow-through today, there is a good chance to see a cross of the average MF. If the day closes above the average MF + porosity (+0.13%), the EOD GDX robot will cover its short position and enter a new long position at the open tomorrow.

The RT model will stay long but would revert to a short if GDX falls back intraday below the average MF – porosity (-0.13%) after reaching the average MF + porosity (+0.13%).
So, there is a possibility that both models will be either long or short and in harmony tomorrow.

Technically, Monthly S2 (50.09) is still the key floor level to conquer and hold. The 5-day VWAP (50.02) or the average price paid by buyers since the last RT long signal could act as another key suppot/resistance today.
Still no advised setup in IWM.
Billy