alice

NFTRH; Gold Stock Strategy

Normally I want to try to avoid updates about what I am doing with personal trading, especially during emotional, hype-filled weeks like FOMC week.  But with the gold sector so in the spotlight lately and with my stance (about the risk of a correction) I assume well known, I wanted to update you on a move I am making this morning.

While I thought about simply adding the likes of NGD (a miner I have as a primary target if the bull market scenario proves out in 2016) as it got knocked down this morning, against the hedging vehicle DUST, I simply decided to take the 11% profit in DUST instead.

With relatively light positioning, it is not the end of the world if the sector is beginning a correction as of Friday’s down day.  But this is FOMC week and volatility is a thing that cuts both ways, so I decided to get rid of this leveraged hedge.  As to the chart of its underlying, here is the view of GDX and the initial support comparable to the HUI 160-165 area we noted in NFTRH 386.  So far, this is a consolidation, not a correction.  The EMA 20 at around 19 is a key area for the short-term picture.

gdx