Here is one of those occasions where NFTRH+ shifts from individual stock charts to an informal update.
Yesterday per the Trade Log I had the need to raise cash into the last part of the day.
“Increased GDX on the pullback. Taking the profit on CEF, which went up driven by silver, which itself could probably use a breather. Profit taken in BTG to raise cash. Profit taken in partial MSFT position to yep, raise cash. I am not thrilled with KL‘s inability to get back above the SMA 200, so taking a small profit to raise cash for now.”
Today stocks and precious metals are red in pre-market.
As noted above, silver “could probably use a breather” and it is getting one. Gold too. Gold remains bullish. Silver short-term trending up.
Stocks on the other hand are ticking red right from our upside targets. They remain short-term up trending as well. I made my almost obligatory short (SPY) failure trade, but am much better at maintaining a short position that is taken with a setup than with a guess. If a new correction begins (if) it is not likely to be like the shocking crash affair of Feburary/March. There should be setups along the way. Meanwhile with profits generated to date I’ll use cash management as the default (i.e. lock more of them in as needed).
And speaking of cash management, that is how I plan to go about the precious metals as well, per Sunday’s NFTRH 603 and per the Trade Log note above. A few items were sold, a very few more could be sold, but in general I have been using weakness to add, including to GDX shown here.
While HUI does not have the upper two gaps, GDX does and so let’s use this ETF. A minor pullback would fill the gap at 35. A pullback to test Goldbugs’ commitment would test now-major support below 31 and fill that gap. The lowest gap need not fill because it represented a burst above the SMA 50 and SMA 200 and was the motor that drove it back to an uptrend (i.e. a breakaway gap).
For me what will work best is to keep an eye on the fundamentals and if they continue positive and marry up with pullbacks I’d like to add, beginning probably at GDX 35. The most important macro ‘funda’ indicator? Per the chart in NFTRH 603’s Precious Metals segment, gold vs. stocks (SPX). It is vitally important for the Gold/SPX ratio to continue going bullish.
