Executive Research Report

Volatility is back, and with it comes the kind of setup traders dream about. While most investors are distracted by headlines and short-term noise, a key signal is flashing beneath the surface. A powerful shift is unfolding in one corner of the market, and it could present a high-reward opportunity for those paying close attention.

We’re not talking about something even more telling is happening behind the scenes.

If you know where to look, the chart is revealing a pattern we’ve seen before… and the outcome could be just as explosive. This move isn’t for the faint of heart, but for traders who thrive on calculated risk, the timing might be just right.

Let’s break it down...

What immediately stands out is the Commodity Channel Index (CCI), which has reached its highest level in three years. The last time GDX hit this level in 2022, it led to a steep drop in prices.

We’re also seeing a bearish divergence develop in the Relative Strength Index (RSI), which is another red flag.

Gold’s rally appears to be driven by increased uncertainty in global markets following the latest rounds of tariff hikes between the U.S. and China. Beijing raised its tariffs on American goods to 125% after Washington lifted its own to 145%.

If you’ve been keeping up with our recent updates, you’ll know that the S&P 500 is currently holding key support levels, while gold continues to gain momentum.

There’s no telling what President Trump’s next move will be, but as other countries are forced to respond to these tariffs, any sign of easing trade tensions could boost global confidence — potentially reducing demand for traditional safe-haven assets like gold.

Additionally, GDX has been outperforming the metal itself, which could suggest that gold mining stocks are overheated. For that reason, I see an opportunity here: the current setup looks favorable for a speculative put option trade on GDX, given the risk-to-reward ratio.

Pay up to $1.00 to open this trade.

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