GDX Rally - FCX Selloff

From yesterday morning:

"We know that "Retests of broken support are common, and are to be expected," so I'll try to keep that broken trendline in the GDX on the radar. It comes in today, September 16, at 63.6875."

I shorted 5,000 GDX yesterday morning, at 63.68 Channel resistance. I didn't want to stay very long, though. I covered fairly quickly, at 63.45, as the GDX moved down to find support at the EMAs. One of the reasons for my "hit and run" play was that The Bulls broke out of this triangle, which put 63.79 IN PLAY, just above my short entry. That breakout in the very short-term 1-Minute chart didn't concern me much, but...



...in the Hourly chart, The Bulls also broke out of this Falling Wedge, so that was TWO bullish breakouts in the two different time-frames. That concerned me.

Generally speaking, the longer-term daily chart will trump the Hourly and shorter-term charts, but there's no "always" in the stock market. I didn't like being short that kind of near-term strength and anything above 63.68, which was the bottom of The Channel in the daily chart, was "Ye Olde Knuckle-biter" for the shorts, and I was one of them. I took the money. More like grabbed the money ;)



It was a good job of it that I did because after I covered, the GDX formed and broke out of a Bull Flag (pattern in yellow), then moved higher and held up all session.



In the daily chart, The Bears now have "Ye Olde Knuckle-biter" with which to contend. They are left wondering about The Channel breakdown since the GDX closed back inside it on a 3-day pattern that "looks like" a Bullish Morning Star. That pattern normally shows up only at bottoms, but regardless of what we call it, Thursday and Friday were a pretty nice recovery after The Bulls got smacked out of The Channel.

The Recovery could be one of those "One Day Wonders," back inside The Channel, to test the mettle of The Bears, who obviously need to break The Channel again, then take out the 61.35 low of Thursday's Bullish Hammer.

The bottom of The Channel comes in on Monday, September 19, at 64.05. Friday's close was 64.11, so the GDX is "right there."



Another signature "Gap And Crap" opening for FCX. Have mercy!

The initial plunge in the first minute of trading didn't break 42.35-42.36 "last horizontal support" from Thursday afternoon (the top yellow horizontal line in the next chart), but after a brief rally, 42.35-42.36 support got taken down. UGH. I shorted 5,000 shares of it, at 42.56, on the next rally to the EMAs.



The Bulls staged a Bearish Rising Wedge rally (pattern in white) in an attempt to get back to the opening high, but it was no good. The pattern broke down, putting 42.15 IN PLAY.

42.90 - High of the Rising Wedge
42.30 - Low of the Rising Wedge

42.90 - 42.30 = 0.60 points of downside from the breakdown at 42.75.

42.75 - 0.60 = Target: 42.15 IN PLAY

42.24-42.25 was next horizontal support, so I covered half of my short position going into it, at 42.26.



I really, really didn't want to cover the other half when the 42.15 target got MADE since important 42.24-42.25 support just had been broken and the stock looked marked for a move toward Thursday's 41.50 low, but since Ms. Market punished me on Thursday for NOT "taking profits, or at least 'some' profits, when targets get MADE," I covered the remaining half at 42.15, even though I had covered half already, and planned to re-short the next rally.





CURSES!!! No rally. A dead drop to Thursday's 41.50 low, exactly. "Damned if you do...damned if you don't." LOL.

Oh, well...remember to be grateful for whatever Ms. Market gives you, Melf!

The trades were filled in such small batches (pain in the $#$%), I had to take two screenshots to get them all on there:







Gain on the session: $2,900