Direxion Daily Gold Miners Be (DUST)

[Sgreg]

Well I believe the 7th was when the FED announced their un-scheduled meeting. Maybe big boys started to load up anticipating something.

Also possible is a short squeeze. Remember how I was talking about pinches and equilibrium? Well back before miners went on this huge run guess what? They were pinched. The mining sector (because of their poor fundamentals) are always a target for shorts. Mining stocks are heavily shorted. It is possible that even with their run up from January through March that the short positions were still large enough that once GDX was in that wedge there in the first part of April that remaining shorts decided they were going to cover and that might have started a squeeze.

It is also possible that the first paragraph had a role to play with my second paragraph. The one thing I know for fact is pinches must get relieved and depending on how out of whack the equilibrium is or has been it causes an over-reaction to the other side. If shorts were very very deep into miners then it is possible that their position could take months to fully peel back. Therfore on April 7th it was possible that shorts were still holding a position and decided to exit.

Having said that though there is also something else out there. There is massive TV media/promotion/website/message board/social media pumping on-going as well. This is something different from the top two things. This is also on-going and is what adds the gasoline to the first two things. There is a force behind all of this pumping.

I see what you are saying about the chart. You are right. The real hard core pump campaign started April 7th. Something changed or more likely intensified starting that day. The one thing is though is that it was not gold. Gold has been trading flat for a month. It isn't anything fundamental that I can tell. It is something that is part of that dark world of the market IMO.