SHAK & GDX Updates
Let's look at the chart of SHAK and GDX. One looks amazing! And the other could be THE opportunity.
Let’s review two trade ideas I recently posted. One is looking beautiful…and one is looking like an opportunity if you missed it.
But first, let’s remember, technical analysis is not perfect. It’s about probabilities, human psychology and rules-based setups. Sometimes they work…sometimes they don’t. When a trade is working, let it play out and move your stops up.
When a trade breaks trend, get out.
SHAK
On October 5th, I wrote about the imminent breakout of SHAK and how eerily similar it was to NVDA. You can re-read it HERE. Well, it has broken out and looks badass! I hope you’re in!
This was the chart then: 👇
This is the chart now: 👇
20% higher
THIS IS WHY I LOVE TECHNICAL ANALYSIS!!
You can see why I love these setups. They repeat over and over. Now, that said, a re-test of the breakout is not uncommon, and is actually a MUCH better setup so if you did not get in SHAK, don’t chase. Set your alerts and buy the dip!
GDX
Now let’s look at one I sent TWO DAYS AGO that did not bounce like I hoped. BUT…it still looks like a buyable dip. An OPPORTUNITY for those not yet in gold miners.
Once Trump won the election, gold sold off. TRUST ME, this is a dip to be bought if your time horizons are longer than the weekend. Gold will be much higher a year from now. A Harris win would have been better for gold, but a Trump win is still great for gold (he is a peacemaker and that reduces the global uncertainty, as an example) . The fiscal spending will NOT stop. Inflation will NOT be contained.
These are my thoughts.
Anywhoo…..back to the charts.
I sent this chart on Tuesday: 👇
And here we are two days later…
GDX gapped down. A dip to an IMPORTANT level. I bought the dip, hell yes!
MY line in the sand for GDX is that red zone in the chart above. That is below trend and below the 150 day moving average.
There it is. My update on two charts. Let’s gooooooooooooo!
Thanks for reading.
Eric