Very large and unusual dark pool orders were detected in GDX stock on Friday, August 16, 2019.
This week marked another milestone for prices as gold climbed to fresh six-year highs and nearly hit $1,545 level on Tuesday.
The gold market may take a breather, but maybe not a long one. The fundamentals are simple: central banks are on the cusp of devaluing their currencies and that will be good for gold.
The GDX ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index. The fund normally invests at least 80% of its total assets in common stocks and depositary receipts of companies involved in the gold mining industry. The index is a modified market-capitalization weighted index primarily comprised of publicly traded companies involved in the mining for gold and silver.
The dark pool prints occurred at $28.26 and $28.28 making this level a critical pivot level going into trading next week.
The unusual dark pool prints look like buy orders in the $28.28 area.
The options flow in GDX on August 16, 2019, clearly favored the bulls with lots of calls being purchased in order to front run the after hours dark pool trades. We’re told that technically that’s illegal for someone to trade on insider information about large dark pool block order trades but we all know front running takes place, even in Congress.
On August 12, 2019, $4 million worth of GDX calls were bought near $29.51 with 85K calls trading, vs 16K puts.