There is an old trading proverb that says “Volume before Price” which translates that volume always increases before Price goes up. Not always 100% true but very often this proverb is true. With that in mind, take a look at the volume profiles of both DUST and NUGT during the month of August.
Somebody is smelling a Gold Top and is loading up on shorting the mining stocks. There is another proverb, however, that you should “never short a Bull Market.” So while I am not ready to short Gold & PMs just yet, the volume profiles below make me leery of getting too aggressive here on the long side when we are in my timing band for Gold & PM’s to start seeking out an Intermediate Cycle Low (ICL).