That's a loss of $293.75 or 71% due to decay or volatility.
Move in the past 2 months is something that is very rare, 8 std deviations away. So can it continue? Possibly, but if it corrects it will be hard and swift. You can see how much you can lose to decay, so why overstay your welcome.
If you look at the GDX it is sitting on number of resistance points. Fibs / 200 day moving average after 100% move from the bottom without a pause. Same goes for Gold.
USD had the worst 2 months in the last few years. It could also rebound.
BOJ could cave in and decide to help Nikkei that tanked 1700 points. If they do JPY goes lower and USD higher = Gold gets hammered as well as overstretched miners.
RSI on GDX shows overbought (hits peaks) and it is trading well above upper Bollinger band. Expect correction as soon as Monday.
while these idiots ruin the country.
Pretty steep term structure. This tells me that either we have a big pullback or UVXY gets rampaged.
Let's go miners.
VIX is too low, market has plenty of gains. Euro is strong and Draghi wants it lower (possibly at par). FED will make a move and release some air from the bubble. They need those rates higher to benefit the banks and replenish the ammunition for another decline later on.
Not worth holding here if gold can't keep its gains.
Go ask a few folks at Greenwood Village. They are going for the high grade to get more yield.
Once the price recovers they'll mine lower grade - same profit - more work.
Numbers still good. Hopefully gold sticks around, because earnings are not that great considering they are going for the high grade ore vs. hard to mine stuff.
NEM did ok and it is the best of the miners. I'm not so sure that heavily indebted ABX can do as good as NEM and Barrick had the biggest run of any miner.
Where does that put my NUGT position. I want to hold, but the pain could be increasing. $8K certainly hurts, we'll see if we have better luck tomorrow.
Sentiment: Strong Buy
Mothers....I'm buying the gold dip.
By the year end 2300 is likely and 2800 in the year after as we reach full employment.