Salivating Over Miners

By -

Presently my largest long position is in the miners ETF, symbol GDX. I am typing this post over an hour before the opening bell, so by the time I post it later today, I'm not sure what GDX will be doing, but as of this writing, it's up about 1.4% pre-market.

My belief is that GDX will work its way up above $56, at which point I intend to sell the position. More importantly, I intend to go short GDX above $56, since I anticipate the movement shown with arrows based on the intraday head and shoulders pattern, with a target of about $48. I've tinted in green the area where the GDX could continue pushing higher, since I don't necessarily think it'll stop hard at that line and reverse, but we shall see.

(UPDATE: I've sold my GDX and am short it now, since we're into $56.xx territory. I want to emphasize that it still may push into the tinted zone, but time alone will tell.)