Miners Re-Dusted

With the eggheads ready to render their rate hike non-decision but maybe jawbone QE withdrawal and a tougher funds rate stance out in the future, and with a world full of goons with big accounts, quants with fast algos and casino patrons with sweaty little fingers perched over buy and sell buttons pending the oh so important release from said eggheads… and with GDX having popped to fill a gap on slight volume, I think it is right for me to try to lock down yet another profitable week in the gold/silver sector to go along with some good things going on in broader market positions. Re-enter the DUST hedge against miner longs after profits were taken on it a couple days ago, pre-miner bounce.

Key support for HUI has been 195 to 200 and the equivalent area is shown here on GDX. Again, the market owes me nothing, but like a batter with a 20 game hitting streak you ride it until it breaks (which it oh so surely will). But right now I am seeing the ball and the spin on it told me to hedge once again. Now we’ll see if the batting average can keep climbing.

I don’t send this kind of post out to subscribers because I think it is the height of arrogance for one person to think that what is right for him is right for everybody. In other words, I don’t like to jam peoples’ radar with stuff that has already been covered. Ahead of the pullback we noted that traders should sell, hedgers should hedge and holders should not buy until the sector corrects. So this is what one dope is doing with his miner exposure.

gdx

PS: It goes without saying that if I did the wrong thing here (i.e. the miners don’t pull back) I’ll be decisive in fixing it. Can’t let these leveraged 3x’s go too far against you. But it’s designed to break even, not make money if the miners drop. So it’s a short-term way station sort of thing.

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