Will the Miners Get Dusted?

I covered my short on silver for +8% (using the leveraged DSLV) and decided to use the more direct hedging route (for my miner positions) in shorting the leveraged miner bull fund NUGT. At one point today I was short both silver and the miners, and actually quite net short the sector. I did not want that to continue, so the profit was booked in DSLV and a short leash is on the NUGT short.

Here are NUGT and its bearish bro, DUST. The bear candle yesterday put the miners below the short-term support zone (now S/T resistance) and the bull candle on DUST put it above resistance (now S/T support). These zones are the tolerance for holding short. I am not gambling, I am hedging because the miners failed to get above even the first of our 3 resistance milestones, which was the SMA 200, using HUI as the reference point.

nugt

dust

So I am not gambling on a bearish miner case (although that is how it is tilted now), I am hedging because the miners failed to get above even the first of our 3 resistance milestones, which was the SMA 200, using HUI as the reference point. For months I’ve been beating subscribers up with these upside resistance areas for a reason, and that reason is that the short-term bear case has still been alive. Now let’s see what the immediate future holds.

hui

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