Originally published by Chamber of Merchants
Gold Miner Charts
Actually, I was meant to comment on this in the morning update… But I still haven’t had my coffee so it is understandable that I may have neglected to include this… so here goes…
The ProShares UltraShort Gold Miners (NYSE:GDXS) is the US ETF you buy when you thing gold miners are going down… This fund is the inverse or short trade of US gold miners. If GDXS goes up, it means more traders are betting on the demise of gold and gold miners. If it goes down, it means that traders are abandoning negative sentiment on gold. It just so happens that GDXS gapped down:
On the other hand, ARCA Gold BUGS, Market Vectors Gold Miners (AX:GDX) and Direxion Daily Junior Gold Miners Bull 3X Shares (NYSE:JNUG) started to show some gains during US trading:
By no means does this mean we’re in the clear from a precious metals perspective.
However, it does signal that sentiment is starting to shift away from the bearishness of gold’s earning potential.
As discussed in the beginning of the post, until the gold price and the TEMA move above $1230, it will be a lot of back and forth.
Entry into gold transactions should be around support zones to manage risk.