It seems that choosing VanEck Vectors Junior Gold Miners ETF (NYSE:) to short the PMs was a good decision—juniors closed the day at new 2021 lows. Will our profits only grow from now on?
’s yesterday’s intraday attempt to rally was not bullish. On the contrary, it was what usually happens right before a big slide, especially given the ’s breakout.
Let’s start with the latter.
Yesterday there was a second session in a row when the USD Index closed above the neck level of the broad (~yearly) inverse head-and-shoulders pattern.
Furthermore, it’s been moving slightly higher in today’s session, at least so far.
This is a very bullish price action—the USDX’s breakout was not accidental, nor was it based on geopolitical news (the latter tends to trigger temporary moves that are then reversed). Additionally, it was preceded by a consolidation.
Consequently, it seems that this breakout has a huge chance of being confirmed (we need just one more—today’s—daily close) and followed by another sharp...read more...