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Per the Daily Notes yesterday I increased positions in KGC and RGLD. I also added a second AEM position. That is so that I do not out-smart myself trying to be miserly for new buys. I have conviction that a new leg up will come, so the adds were made with the idea of another buy happening either on another correction low or the upside parameter per this update.

It’s actually pretty simple. GDX is in a bull flag that has tested the first viable support level at support corresponding with the (blue) 50 day average. I have been prepared for a deeper test, possibly to the SMA 200 (40.42 and rising).

A bull flag is also a downtrend channel, so I am allowing for an upside gap fill and a hold within the flag’s channel as a potential continuation of the correction. However, with the exception of the “America great again!” correction in Q4, 2024, gold stocks have not allowed miserly bottom feeders to be too miserly.

GDX has since declined not even to the SMA 50 once, and has twice declined to and briefly through the SMA 50. Those were routine corrections.

I was not willing to gamble that the correction would go deeper, hence the adds yesterday. If GDX fills the gap and breaks the channel (bull flag) to the upside it would appear to be “bull on” (Which would be confirmed by a higher high to the May 6th high of 50.83) and…

…switching to HUI, which is how I am measuring the ultimate target for this phase of the bull, we’d be on the HUI 500 Express, which is the target I’ve had in play since we made the point 4 low and broke upward from it. If we are right that this correction is a buying opportunity and if it is a 5th and final leg, it could be dynamic and capable of registering the target in a final burst as more mainstream investors FOMO (only to later learn what usually happens to FOMOs and MOMOs in gold stocks).

That’s the bigger plan. The GDX chart above illustrates the smaller plan that would be the trigger to the bigger plan.