On 8/25/14 we officially closed our long call on the gold miner’s ETF (GDX). In that post we stated that the stock and momentum didn’t move the way it should after a buy signal. Today the gold ETF (GLD) broke below the rising trend line that had supported price. In addition, it broke down from of a triangle from the wrong side…the bottom. This pretty much seals the deal for precious metals in the near term and makes them unattractive. Like I said in the other post, sometimes you just have to close the trade and wait for a better opportunity.
The signal for GDX from StockTwits hasn’t closed yet, but is failing. More evidence that GLD will most likely visit the May low if not the December low.
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