Folks, first I’ll note that hedging the precious metals for me has often proven more aggravating than it was worth. That has been due to the grinding nature of this would-be big picture bottoming process. So I am just letting you know that rather than selling junior and exploration gold positions in the IRA, I am protecting them with JDST with the intent to get through the FOMC tomorrow now that some gains have been made. The biggest protection continues to be the ongoing high cash level as noted in NFTRH 308, which is the best form of risk management (in my opinion) until we get clear of some technical parameters.
Due to the reasons stated above and for the purposes of this update, I do not recommend you hedge positions just as I don’t recommend you sell anything (or buy or hold on to anything, for that matter). I simply present the chart of GDXJ (which has been showing positive signs in leading GDX) with a view of upcoming resistance, to give you a perspective on it in your decision making.
The 40 to 41 area is going to bring on significant resistance. With the FOMC on tap, the situation is complicated. The little pattern actually measures to 40, so that is synergistic with the resistance level as well. On the plus side, if GDXJ clears 42 we can start talking about a new bull leg in the miners. But the chart has work to do before we can open that discussion.
I think this is clear, but I’d be happy to answer any questions regarding this chart. Simply pop a mail to the ‘gt’ address or use the contact link above (if viewing at the website).