This is precisely the type of price action gold bugs want to see, with each seemingly cautious bit of action failing to follow-through lower. We are looking at one higher low after the next in the yellow metal, leading the charge in its entire complex of late.
Earlier this week, I stopped out of a gold miner long inside 12631 for a loss. However, we have caught several nice trades in the precious metals and miners complex dating back to last year, to the point where taking a loss here and there, despite how high beta the sector and ETF’s can be, should be accepted as part of the process.
I remain unperturbed by my loss earlier this week, and am actively seeking to reenter the complex if today’s strength holds and builds on itself. NUGT is at the top of my list, as are some silver miners like SLW.
The gold metal is outperforming silver again. And the best case bears have here is that silver is the weak link which will roll the sector over lower.
However, bulls are winning battles here after a multi-quarter bear market, and I am respecting that.
Also note UNG losing $25 today. I am stalking DGAZ for an entry.