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March 31, 2016 | GDX and GLD Spike Trade Setup

Chris Vermeulen

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and author of the book: 7 Steps to Win With Logic

Here are my charts of GDX and GLD during pre-market trading today (Thursday, March 31st). I sent this chart to my followers alerting them of today’s market bias and intraday trade setup.

If you don’t know what spike alerts are, let me explain briefly. In short, the market gives of these rogue price spikes which only some data feeds catch and share. On top of that, some data feeds filter their data depending on the chart timeframe you are loading and will only use the AVERAGE price and not every tick to create the price bar on the chart.

Meaning, even if your charting platform and data feeds don’t filter our these rogue price spikes (which most do filter these out), then you may only see these price spike with specific chart time frames like the 30-minute or a 10-minute chart. It varies from day to day and when the rogue spike happens.

Bottom line, if you see these spikes, 80% of the time we see the price spike target reached within 36-48 hours.

TODAYS PRE-MARKET SPIKE ALERT:

This shows you the spike and gap windows on the chart. Typically Gaps get filled so when a spike matched that gap I fall in love with the setup that much more :)

spikengap

 

END OF DAY TRADING RESULTS – TAKE A LOOK

spikedual

 

TRADING CONCLUSION:

In short, while today’s moves were no huge by any means total about 60 cents per share, in many cased these spikes provide $1-$3 per share profit and if you are active trader with 500 or 1000 share lots making some decent spending money :)

The last thing, I will be adding an update feature to the members area where these price spikes for SPY, QQQ, GDX, and GLD are tracked and members will receive email alerts for pre and post market hours when they occur which is going to be awesome! I excited as it will save me all the chart surfing and jumping time frames to find these trade.

Cheers and happy trading!

Chris Vermeulen – www.TheGoldAndOilGuy.com

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March 31st, 2016

Posted In: Gold and Oil Guy

One Comment

  • Avatar Stan says:

    “Here are my charts of GDX and GLD during pre-market trading today…”

    I’ve been trying to do my due diligence on this fund. Anyone know why there is a clause in the GLD prospectus that states GLD has no right to audit subcustodial gold holdings? Why would the organizations behind GLD forfeit this right and create such a glaring audit loophole? I have not heard a single good reason for the existence of this loophole thus far. It also doesn’t help that GLD claims to be fully backed by physical gold bullion but yet it refuses to give retail investors the right to redeem for any of these ‘claimed’ gold bullion. There are a number of other red flags as well from what I’m reading:

    “Did anyone try calling the GLD hotline at (866) 320 4053 in search of numerical details on GLD’s insurance? The prospectus vaguely states “The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody.” When I asked about how much of the gold was insured, the representative proceeded act as if he didn’t know and said they were just the “marketing agent” for GLD. What kind of marketing agent would not know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors.

    I remember there was a well documented visit by CNBC’s Bob Pisani to GLD’s gold vault. This visit was organized by GLD’s management to prove the existence of GLD’s gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this “GLD” bar was actually owned by ETF Securities.”

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