Looking over my charts this evening (no shoulder devils or broken elevators), it seems that while the price of gold is doing the Heschel Walker down the field, the metal’s miners are lagging behind like a fat man with smoker’s hack. This gives me some pause and has me with my finger on the trigger. Despite minor wins today in AUQ, AUY and ANV, most miners that didn’t start with “A” were having trouble addressing the field. Moreover, silver struggled at the $40 line and gave it up by the end of the day. As a result, despite gold being up nicely, I was still down in my miner-saturated portfolio almost 2% overall today.
I’ve seen this play before (gold up, silver and PM miners lagging) and I don’t intend to stick around to see what comes of it again. I will likely sell some portions of my miners tomorrow morning and then hedge the rest with sold calls. I will also launch the remainder of my NUGT and DGP (what remains of them) even as I’ll likely hold on to my GLD and SLV positions for the duration,
I will then likely spin some of the newly raised cash into a few rebound stock positions to take advantage of a bounce I feel certain shall finally come tomorrow as we test the depths of 1090 and perhaps lower. I am again looking at QLD, TNA, EEM and possibly, quite possibly EDC again (very small ball!).
Be well and be wary, my friends.
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