Gold has a longer-term Intermediate Cycle that, on average, makes a major Intermediate Cycle Low (ICL) every 22-28 weeks measured low to low (or around 6 months). Within its longer Intermediate Cycle, Gold has 3 to 4 shorter term Trading or Daily Cycles that last, on average, 23-29 trading days low to low.

With that as background, I took profits on my leveraged NUGT position late last week as it was getting late, in terms of Time, in short term Trading Cycle #3 (TC3) for both Gold and GDX. You see, last Friday was Day 24 for both Gold and GDX, so yes, it is getting late. Attached is a link to my Weekend update along with a chart on GDX from today’s close that signals that GDX is now likely moving into TCL3. If correct, I have what should be strong support near, or just below, the 50ma where I am expecting TCL3 to form so we shall see.

Note that GDX formed both a swing high and closed below it’s 10ma and my TC3 uptrend line. The combination of these three events this late in a Trading Cycle is usually a very strong signal that a short term Trading Cycle has topped.