Gold Miners Tumble - GDX Trade Part 2

I opened a trade on GDX last week. You can see the original post here. I get good about the setup and trade premise, but as life goes the trade quickly turned on me.

So I’m taking this opportunity to document how I’m managing the trade. The trade is on $34 6/12 calls. My original entry and averages now how my average cost down to $0.44 and as of close the the contracts are worth $0.27 which is a dismal negative 39%.

However, during Friday’s afternoon season we saw some pretty positive price action. We traded above the H&S neckline and on the 20 day we are bouncing against the 50 day SMA.

My plan today is to see how the action plays out at open. I want to have confidence that we are going to climb as there’s some positive action occurring, but one geopolitical comment, tweet or report can make this market swing in unpredictable ways.

Cheers to many profits, Cryptic

DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.