last time i suggested gdx was in a 5 wave corrective pattern with the current decline being the wave E....hmmm wave E started around $58ish.....ok some dude charmed in that EW is gibberish and gdx will see 100 before 45.....ok that was then...
now, i feel like a fool too.... this wave E look more like a wave 3/3 jmo. nov decline was 1/3 and jan correction up was 2/3...u get the drift. the current decline since late last august really looks impulsive...ie 5 wave decline.
imho buying dip in an impulse decline is suicidal....however, if u r lucky enough to catch wave 4/3 and wave 4 up....i guess its all worth the gamble.....lol.
gl....just some stupid tuesday afternoon thoughts.
shorted gdx over the weekend got stop out monday am.....guess my stop was too tight:(....feel like got robbed the same way u longs r feeling.
right now i think the downside momentum is still too strong to go long unless its a quickie....lol. technically the right trade is still go short since any buying signal will not be generated any time soon, ie within the next couple days at least; however the oversold and knee jerk rally is also a concern if starting a new short position.
hence i would sit tight for now if no position and maintain the short position if still short with a stop above the last high.