PM Complex investing approach:
Even in a Bull Market, Gold Mining stock positions should be traded due to their big swings but over longer time perspectives than you might think. I actually have three different levels of investment and/or trading strategies. First off, I am not a huge fan of holding 3x leveraged instruments for long periods. I view the shorter Trading or Daily Cycle for areas where NUGT and JNUG can be used but do not like them for longer holds due to their decay and the fact that Wall Street has designed these to fleece many investors with their HFT algo games.
That said, most of my Trading positions in this complex we established back in the December 2016 timeframe near the Yearly Cycle Low. I am looking for selective adds here but I am Not Chasing. Rather, I am watching previously established positions:
- Core positions: Mostly small miners (Spock’s Rocks). These are long term holds that started in Feb 2016. Even these positions can be harvested near 5-6 month Intermediate Cycle highs or perhaps near Yearly Cycle highs.
- Intermediate Cycle positions: These are more liquid longer term trading positions for the 5-6 month Intermediate Cycle. These were established near the Yearly Cycle Low in December 2016 and will very likely be held into the March or perhaps April timeframe.
- Trading Cycle Positions: Highly liquid positions in GDX and GDXJ (or NUGT/JNUG or your favorite large Mining stocks like NEM, AEM, AG, SSRI, etc.) These are traded on the shorter Trading or Daily cycle, which can be difficult. I bought some of these over the last two weeks using “Stink Bids.
In terms of when to add any additional positions, I am expecting a stronger bounce in the USD sometime fairly soon so sometime over the next week or so may provide another opportunity.