Loading ...To Bounce Or Not To Bounce – Close To The Exit Door Now.
The miners seem to have been somewhat ahead of the curve (pardon the pun). Gold has just broken down from it’s more recent symmetrical triangle. Golds longer term triangle from the late 2015/early 2016 bottom has support at $1150ish. The HUI symmetrical triangle goes all the way back to that bottom nearly 18 months ago, and it’s just about resting on that support line now. Another 5 point drop in the HUI and, for me, I’m out until we hit those lows again, or see some convincing evidence in the charts that this is really a bull. Another 5 point drop and the bull looks to be on life support. I’m lucky, I got in at HUI 120, so I’m sitting on a nice 50% profit. No way I’m going to hold on all the way down It’s been a tough lesson, and I did take some profits on the way up, so I may be up about 60% altogether. Could’ve jumped earlier, but this ain’t easy.
I’m an optimist at heart, and can point to many reasons why we should rebound out of this mess and surge to new highs. However, once the charts are broken, they’re broken, and it’s hard to argue with that. If we see GDX down to 8 or less, $5 silver and $700 gold, I suspect I’ll be back (if there are any miners left solvent).
Fair points NS and there is always a good time to take profits. I closed out all my GDX, GDXJ, GOEX and Gold and Silver holdings over the last few weeks, but I still hold my long term junior stocks. Some are under water, but that was only due to the fact that I took profits previously and when went back in on the dips, so I am still up. I still think there could be a surprise for the miners and this will be seen as a shake out, but we will see. I will hold them for the long term now and use my cash to look for other opps along the way.