{"id":13432,"date":"2019-04-24T16:11:32","date_gmt":"2019-04-24T20:11:32","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=13432"},"modified":"2019-04-24T16:11:32","modified_gmt":"2019-04-24T20:11:32","slug":"its-almost-time-to-buy-gold-stocks","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/its-almost-time-to-buy-gold-stocks\/","title":{"rendered":"It\u2019s Almost Time to Buy Gold Stocks"},"content":{"rendered":"

The gold sector has had a miserable month. The VanEck Vectors Gold Miners ETF (GDX) has fallen 11% from its March high – with much of that decline happening in just the past week.<\/p>\n

When we last looked<\/a> at the gold sector, we noted that GDX had reversed a potentially bullish move and looked poised for a fall. And we set a downside target of somewhere between $21.50 and $20.50 for GDX.<\/p>\n

As you can tell from the following chart, GDX is now approaching the lower end of that target zone…<\/p>\n

\"\"<\/p>\n

The January low near $20.50 is an obvious support level, and it’s where traders can start looking for a bounce in GDX. Notice, though, that there isn’t any positive divergence on the MACD<\/a> or RSI<\/a> momentum indicators. In other words, the indicators have been falling right along with GDX.<\/p>\n

This indicates that the existing downtrend is strong. And while GDX might get a short-term bounce off of its support level, the sector probably still has lower to go.<\/p>\n

Take a look at the action in GDX last August and September. As GDX fell to a lower low, you can see that the MACD and RSI indicators made higher lows. This is the sort of positive divergence that indicates the potential for a trend change. And that’s the sort of action I’m hoping to see develop in the GDX chart over the next few weeks.<\/p>\n

Aggressive traders might consider buying GDX as it approaches support, and then trading it for a short-term bounce. But, don’t stick around too long in the trade. Any bounce is likely to be short-lived and lead to lower lows.<\/p>\n

We’ll get a much better, intermediate-term buying opportunity in the gold sector if we can get positive divergence on the technical indicators. That’s going to take at least a couple of weeks to develop. But, that’s where I’ll be looking to buy the gold stocks.<\/p>\n

Best regards and good trading,<\/p>\n

<\/p>\n

Jeff Clark<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

In today’s mailbag, a Delta Report<\/em> subscriber talks bitcoin<\/a>…<\/p>\n

\n

We are following the strategy of holding long and resisting the itch to take profits, for better or worse. The itch was strong in 2017. I have always been attracted to short trades, so it’s been a bit tough…<\/p>\n

It’s your name I look for in my email every day. Thank you so much for sharing your analysis!<\/p>\n

– Michael<\/strong><\/p>\n<\/blockquote>\n

And another reader responds to last Friday’s<\/a> Market Minute<\/em>…<\/p>\n

\n

Ordinarily, I would agree with you about illiquid options. However, I currently hold option positions on Booking Holdings (BKNG) which trades more than 500,000 shares daily and the option positions I traded had a volume in excess 1,000. Even with this volume, the greedy market makers were still suggesting a bid\/ask spread of $6!<\/p>\n

This is forcing me to wait until expiration day to harvest most of my profits on this trade.<\/p>\n

– Ray<\/strong><\/p>\n<\/blockquote>\n

Are you bullish or bearish on gold? How have you been trading the sector?<\/p>\n

Tell us your gold trading stories, along with any other trading stories, questions, or feedback at feedback@jeffclarktrader.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The gold sector has had a miserable month…<\/p>\n","protected":false},"author":37,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-13432","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/13432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/37"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=13432"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/13432\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=13432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=13432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=13432"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=13432"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=13432"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=13432"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=13432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}