why both GLD and DUST down today

aqtrader · Jul 21, 2015

SPDR gold shares GLD is slightly down today and DUST (Gold bear 3x etf) is also down quite a lot. DUST is 3X in selling short of gold. Why are both of long and short are down? Maybe DUST was too much overreacted in the past few days.

promagma · Jul 21, 2015

DUST is inverse gold miners ETF (like inverse of GDX) not inverse gold.

aqtrader · Jul 21, 2015

promagma said:
DUST is inverse gold miners ETF (like inverse of GDX) not inverse gold.

Thx

ElCubano · Jul 21, 2015

GDM arca gold miners index. Dust 3 times inverse, NUGT 3 times. Although you can definitely see the erosion.

Sotnis · Jul 22, 2015

Very strange. What is going on at 2am every day to knock metals down?

Troy Bombardia · Jul 22, 2015

@Sotnis nothing. Gold/silver are very technically oriented markets. Algos find a pattern ($ falls at 2am), and they keep repeating the pattern each day.

Troy Bombardia · Jul 22, 2015

By the way, if anyone's interested I wrote a post about why gold has to fall a little more before the downtrend is over.

http://tradingslugger.com/2015/07/22/gold-is-extremely-oversold-but-will-still-fall-a-little-more/

GarrettKimmel · Jul 22, 2015

Troy Bombardia said:
@Sotnis nothing. Gold/silver are very technically oriented markets. Algos find a pattern ($ falls at 2am), and they keep repeating the pattern each day.

what pattern is that? Why $ falling at 2 am?

Troy Bombardia · Jul 22, 2015

@GarrettKimmel yea that's the pattern. the pattern used to be "price would spike at 8-8:30 a.m.". now the algos have changed it