Gold and gold miners had a great day Tuesday, obviously benefiting from Fed Chair Janet Yellen's dovish commentary. Given that the Market Vectors Gold Miners ETF (GDX) never broke beneath $19 (discussed in the March 28 "Trader's Notebook"), my guess is it will continue to rotate between that figure and roughly $21.50. As mentioned numerous times over the past month, my inclination is to fade strength toward $21 to $21.50. While that is still part of my playbook, I'll tread cautiously given the sector's bullish reaction to Yellen's comments.
A rarely discussed gold miner, Kinross Gold (KGC), is currently breaking higher from multi-week horizontal consolidation. While resistance is to be expected near $3.70 (mid-January 2015 swing high and late-May 2015 swing low), this is a strong-looking stock that might be worth trading on pullbacks. A close below the 21-day exponential moving average would be a problem, while a close below the 50-day SMA would likely bury the stock.
A reader asked whether Tuesday's upside surge in Netflix (NFLX) was worth chasing, and unfortunately, my answer would be no. Setting aside any ideas or opinions regarding the stock's valuation, I simply can't get behind chasing a stock that's about to run headlong into its 150-day and 200-day simple moving averages (SMA). In fact, I'd jot NFLX down as a potential short sell candidate if the broader averages ever show signs of rolling over.
Any trading or volume profile related questions can be posted in the comments section below, emailed to me at firstname.lastname@example.org or posted to my twitter feed @ByrneRWS