Cycle Trading

The triple leverage Miner ETF NUGT set an historic volume record on Tuesday.

The previous record volume day for NUGT occurred 12/15/16 where 26,912,064 shares traded that day. NUGT shattered that on Tuesday by trading 82,325,216 shares — over three times the previous record.

Since we do not base our cycle studies on NUGT but GDX we will now look at the Miners cycle count.

The Miners did undercut the previous daily cycle low on Tuesday. While 12 days is too early to expect a DCL, we will sometimes see an early DCL if the intermediate cycle low is also due. And the Miners are in their timing band for an ICL. And Tuesday’s bullish close is an indication that the Miners are printing an early DCL.

While the Miners often lead the precious metals, it is gold that drives the precious metals market.

Gold is late in its timing band for an intermediate cycle low. And gold is late in its timing band for a DCL. Once a DCL forms it will likely also mark gold’s ICL. And I think that is what the Miners were sniffing out today with their bullish close. Tuesday was day 39 for the daily gold cycle. As stated, that places gold late in its timing band for its DCL. Once a swing low forms it will likely mark the DCL for gold and the Miners, as well.