Replies to post #2400 on Direxion Daily Gold Miners Be (DUST)

[mannken]

We'll you definitely don't want to be long Nugt for the next several months IMO.

Tighter fed policy coming eventually, subdued inflation and a dollar that is on fire will probably take gold down to the 1000-1100 area if not lower by EOY, unless there is a catastrophic geo-political event.

My Nugt entry today is just a short 1-2 day bounce play on oversold conditions coupled with a possible 9/11 morning fear trade tomorrow.

The ideal trade today was watching gold 1244 June support and picking up nugt long when gold bounced off it. See on 1 year: https://www.bullionvault.com/gold-price-chart.do

It bounced twice and now gold is back to the 1250 area EOD. If 1244 breaks in the next day or two to the downside and there is no bounce, get the hell out of Nugt IMO and look for long dust entries going into next week. Fed policy meetings are Tues/Wed, 'IF' they re-enforce bias to stick with QE wind down and interest rates timetable increase, gold will get hammered again.

New sell target on Nugt bounce if it occurs - 36.75 to 37.25, based on 7 day SMA since sell off began 7 days ago and Fast Sto data.

I always have a .50 margin with Nugt/Dust targets, there are too many moving parts trading gold to have tight entry/exit targets.

Good luck, out of posts now for the day, see what tomorrow brings