10/15/19

 

GDXJ After the Close

 

Yesterday was a quiet day for GDXJ on very light volume.  It was a chance for the index ETF to reverse the down-trend and post a gain.  It was not to be.

 

Price action appeared strong at the beginning but then faded towards the close and ended the day lower.

 

We used the quiet trading to help bleed off option premium and position short as shown on the chart.

 

It’s important to note that nowhere else on the chart are there any more than four successive down-candles.  That is, until today.

 

There were eight successive down candles and our trade captured them all.

 

Price action continued on lower.  However, that next down-leg took longer and had less ease of movement.  Once we’re out we can look objectively at the situation and re-enter or stand aside.  For GDXJ we’re standing aside (at least with options) for the moment.