Direxion Daily Gold Miners Bull 2X (NUGT)

[weazelboy]

Something about today's trading is fishy to me. As far as I can tell, the entire weakness around Gold today had to do with the bounce in USDJPY and DXY. I see no other news that would warrant the sell off. Thing is, the rally in those two wasn't even that significant.

Bringing me to GDX (& NUGT). I'm not buying that GDX suddenly needed to fall apart today and plow through FIVE major moving averages like they weren't even there. SMA 50, EMA 4, EMA 8, EMA 13 AND EMA 20...with an eventual close right on the EMA 13 and just 2 cents above EMA 20. The action just reeks of a controlled move. Buying on weakness numbers show GDX had huge inflows today. I'm sticking with my original call that this ends up being a bear trap rather than the bull trap it appears to be at the moment.

As I've always stated, I will stick with my plan regardless of price action unless/until given reason to change. Today has definitely given me a caution flag and I will be watching closely to determine if I need to change my plan. I want to see this pop quickly back above the web of MA's that so easily gave up today. All JMO.