Energy down. Copper/industrial metals down. Gold/Gold miners down. Makes sense. Only it doesn’t and in the best of the bull it won’t. But we have been managing a coming interim top before said best of the bull comes amid fallen inflation readings.
I added a hedge (DUST) tentatively, but that is not a recommendation.* We are in FOMC week with payrolls upcoming. This mess (broad market, as SPX approaches the 1st and primary objective) can flip either way. Gold stocks can flip either way too, as I’ve tried to point out with this daily chart of GDX.
Today GDX is making a tick below the EMA 20 and is still above the January low of 31.21. So it can still go either way. Again, FOMC week = machines running wild. If it holds here we go for the upper gap(s) and I cover my hedge. If it drops we go for support #1 around 29.50 and possibly a gap fill and support #2 around the SMA 200 (currently 27.91).
* What is recommended is that investors who can take moderate downside go enjoy life, hedgers hedge but understand the risks with that (mainly, missing out on upside) and profit takers feel free to do that too, if you’re a trader. Oh, and cash is paying out, baby.
