Intra-Week Update, Tuesday, 02/17/2009 11:48:52 AM EST GDX LEAP Put Play Triggered by Keene H. Little Click here to email Keene

HAVING TROUBLE PRINTING?

The daily chart shows the setup for the short play on GDX. It has rallied up to the top of a potential bearish rising wedge pattern and a Fibonacci projection for the leg up from the end of January. Bearish divergences continue at the new price highs. It's an attempt to catch the expected turn back down but clearly the risk is that the rally will just keep going. The stop for now is at $41.50. You should have no trouble buying the Jan 2010 $30 LEAP, KFW-MD, for $4.50 or less (bid x ask is $4.20 x $4.50). Good luck.

Gold Miners, GDX, daily chart