The miners may now be ready to start the move down into their intermediate cycle low as a result.
That is the reason I was willing to buy DUST a few days ago. If you remember, I said I thought gold would top early in the week.
Meanwhile, it should take 5-8 weeks to complete the intermediate cycle low, as gold should need at least one failed daily cycle after the current cycle finishes its daily cycle low.
This could possible happen around the next Federal Reserve meeting, which is scheduled for June 3. So in all likelihood, this will occur some time in June. Until then, the risk/reward for the gold miners simply isn’t there.
The Direxion Daily Gold Miners Bear 3x Shares (NYSE:DUST) fell $0.3 (-1.06%) in premarket trading Thursday. Year-to-date, DUST has declined -41.74%, versus a 4.43% rise in the benchmark S&P 500 index during the same period.
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