Wow, the selling in the miners was breathtaking. GDX down 15% in a week. I made a cardinal sin in trading, I tried to front run a move higher based on my views vs my signals, and paid the price in my SIL, SLW, and NUGT trades.
Miners are extreme liquidity on, and that signals for me, defense is back in vogue. I am now in the camp of up this week, maybe next, then over. The potential taxes the top 100% of the population will pay next year will cause a serious drag in the economy. No one will escape. Remember we get the government we want. Smart money looks to be bailing, and earnings outlooks are not helping.
Personally, I will limit my play to VXX and XIV through year end, with some stabs at BOIL, GLD, and SLV. Overnight news reversals will keep me cautious until we reprice.
My current signal have gold and silver neutral, sell (with a bounce) on miners, bounce on SPY, XIV, and a buy on BOIL.
Here are some charts.