Direxion Daily Gold Miners Bull 2X (NUGT)

[mannken]

So with the dollar in such a strong trend

I'm finding it more difficult to find good arguments for a decent gold bounce. Even though I've been opining about Gold bouncing off 1190-1200 area, and have recently scaled some long Nugt in anticipation, the DXY may prove to be the straw that broke the camels back for any bounce expectations on technicals.

I always keep in mind that markets more frequently swing the pendulum to one extreme or the other, fooling the logical thought process and also making the most money requires the most risk and balls to revert from the herd and position against the trend, but the timing has to be right.

With that said, I'm not seeing the dollar making any substantial short term pullback to push gold higher, rather a continued strong trend until something substantial crashes the party.

On the charts, we may see the dollar tick slightly lower or sideways for the remainder of the week, but the 5 year channel resistance break through is blue skies ahead.

Maybe there is a decoupling of miner/indexes and gold paper trade, who knows! But at this point, remaining vigilant is of equity importance to not let 22 or 23 long positions turn into bigger losses for shorter term traders if the market does not give way.

“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.”