Yesterday, I got my higher high candlesticks on the 60-minute charts of GDX and DIG. I bought and held both overnight, knowing they could both gap down.

GDX and the XAU did gap down. I was going to stop 1/2 out under the 5-minute low, but let it trade a little longer. A stop was set for 1/2 at 41.78, and 1/2 at 41.28. I ended up moving the stop to all at 41.78, which was taken. They got me by .06, as the low of the day was 41.72. No matter, my plan was to remount GDX at the next higher high.

DIG’s stop was set at yesterday’s low. I switched to the 5-minute chart, and sold a 1/3 near 86, 1/3 near 88, and 1/3 near 90. My entry was 83.64, so I can’t complain, but I will anyway. There are still no lower highs on the 60-minute chart, and the price is at 92.5.

So, I also bought the higher high candle on the 60-min in AEM. I haven’t sold yet.

Commodity stocks in the gold and oil sectors are having a decent pullback. Don’t try to average into these type of pullbacks without a stop. Use the 60-minute charts for entry. Yes. Here’s more on 60-minute charts, and why I’m using them in this bear market environment.

You can use the next example for entry in oil stocks, or the ETF DIG too. I’m just going to show the gold sector though. Yesterday, XAU had a backtest of the long-term trendline stretching back to mid-August ‘07. It quickly headed back down. Notice the lower highs on the 60-minute chart. Wait to buy the first higher high candlestick, and use the lower of that candle, or prior candle as a stop. An even better entry would be a higher pivot low entry that was taken a few days ago in some other sector ETFs. Patience is the key here.