Dusting Up on the Miners

As noted to subscribers I initiated miner bear DUST a few weeks ago and even added to it after it got crushed on the FOMC rollover (talk about a day to have patience… ). That is because it is guarding the miners I hold; the ones I have chosen not to get rid of despite a short-term bearish technical view on the sector (pending the bounce, which may be ending this week) and the bottom/bounce view I’ve been nursing on the USD.

DUST is actually green now for the first time since the week I initiated it. I don’t want to pretend to be a know-it-all wiseguy; the last couple of weeks have been somewhat annoying to me emotionally and not at all profitable (in fact, I’ve had a slight draw down) as various sectors drain momentum and/or diverge (I’ve adjusted to the best of my abilities).

Anyway, here’s the status of GDX and its evil brother, DUST. The major mining indexes/ETFs halted at projected arrow #4, failing to eclipse even the June high, which would have started turning the tables to a bull view. If today’s breakdown is real and Uncle Buck actually bounces for real, there could be some appreciable downside before what would be a buying opportunity * comes about.

gdx dust

* Said buying opportunity would be for an oversold bear rally, worst case and a new bull phase, best case. The answer to that would be in future moves in various other markets. I still think a stronger USD is key because I still think it would play a role in weakening the broad stock market.

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