Replies to post #3081 on Direxion Daily Junior Gold Miners Index Bear 3X Sh (JDST)

[value1008]

Great post, Marketwise. This enthusiasm for gold and miners is what i was warning about last week. Since the lows of Jan., the GDXJ has increased almost 50% (that's an entire sector!)

From the longer chart, it looks like the May 2015 highs around $27 are inviting testing; Jan 2015 highs around $30 also beckon the bulls.

JDST, as i've said, will fall a LOT FURTHER if that happens.

[THREE-DAY-TRADER]

Well, quick flips and shorter term trading (for the quick an first profit that arrives) have proved been best way to play all of these the last couple weeks.
I still think in approx March that the chart trends will flip for a while.
Gold bugs have gotten way too enthusiastic, playing wedge break outs, etc.
But that's why I've not put a lot of exposure in this yet since I've started to accumulate (for a daily chart swing trade goal). I've tried not to underestimate the gold bug hype & the GDXJ break out too much.

[Marketwise]

And that post proved prescient. We did get that cyclical bull in gold. It unfolded for about the first six months of this year into early July and has since fizzled. The question in my mind now is - was it in fact just a cyclical bull in a secular bear gold market OR, as some believe, are we in a new secular bull market for gold and therefore gold miners? Frankly, I don't know at this point. What I do believe is that if we are in the beginnings a new secular bull market we must see a new up leg in gold and very soon, IMO.