Week 46 Holdings Review
Gold Miners GDX
I hold GDXU which is the 3x leverage of the Gold Miners GDX ETF. It has had a good run and is still trending bullish. This is a chart with the moving averages.
We can see that the price is trending well, and the moving averages are well aligned. The 10-day is over the 20-day, and both are over the 50-day. The price is still well below the 200-day moving average. So, from this view it is a nice bearish to bullish reversal.
The question is whether it has gone up too much too soon and whether it still has strength to continue moving up. Let’s look at another chart with support and resistance lines. This time I will use the GDXU.
We can see the bearish to bullish reversal more clearly here. The price is at a resistance line and perhaps hence the hesitation. The next resistance is much higher giving it some room to run.
I considered moving over from GDX to the XME which is the Metals & Mining ETF. That one is also trending bullish. However, the 3x leverage instrument PICK which is the closest to that sector does not include gold and silver miners. I do like the exposure to the gold miners at this time. So, I will stick with GDXU for now and track its progress.
S&P 500
I have been trading the SPY mostly on the long side recently using call options. These are faster trades which I execute without waiting for actual trend reversals. Right now, I am playing the markets to the upside as the trending remains bullish. Here is a 1-year chart for the SPX.
We can see that the SPX has crossed over a few resistance levels in the recent past. The next resistance is coming up at around 4120 with the angular line I have drawn meeting the next resistance line above the price. For now, I am going to continue trading the SPY using options with a bias to the upside.
NASDAQ 100 QQQ
I also trade the QQQ using options currently with a bias mostly to the upside. Here is the QQQ chart.
Here also we can see that the QQQ has crossed over some resistance levels successfully. The next resistance seems to be at around the 312 level where we have the angular trendline meet the resistance band. I will continue to trade QQQ to the upside for now.