Gold has been testing the limits of our endurance lately. A week ago, when we tried to buy shares of GDXJ, a proxy for junior mining stocks, it ran away from us, seemingly headed into the wild blue yonder. At nearly $24 a share, it was difficult to justify jumping aboard, since, just a couple of days earlier, we’d blown an opportunity to do so at a bargain-basement price of 21.52. We sat tight nonetheless until yesterday, when GDXJ dove into our lap, then trampolined off a 19.66 correction target that had been spotlighted in the “trading touts” section of Rick’s Picks a month ago. Here’s the recommendation exactly as it went out to subscribers the night before, with GDXJ settled at 21.09: “An important [Hidden Pivot] target at 19.66, last mentioned here on April 5, appears to be this vehicle’s immediate destination. I’ll recommend bidding for 400 shares at 19.75, no stop-loss, day order. Camouflageurs can start looking for the turn now, seizing the advantage if it should present itself.”
The chart tells the rest of the story. GDXJ made its intraday low at 19.62 in the opening minutes of the session and never looked back. And neither did we. An hour later, with the stock on its way to a remarkable 8% gain from the low, we told subscribers to take a partial profit. Here’s the advice we sent out via an intraday alert: “Our longstanding target has caught this morning’s 19.62 low nearly perfectly, allowing us to buy 400 shares at the suggested price. Now, on a good-till-canceled basis, offer 200 shares (or half of the position if you bought more than 400 shares) to close for 20.60.” Any subscriber who did so would now be sitting on 200 shares with a cost basis reduced by profit-taking to 18.60. With GDXJ currently trading for 20.55, that equates to a paper gain so far of $390. While there can be no guarantees that GDXJ won’t tank on the opening bell this morning, we’re in good enough shape to weather a few nasty bumps.
Does this style of trading – reducing risk with tightly stopped entries and partial-profit-taking when things go your way — appeal to you? If so, click here for a free trial subscription to Rick’s Picks. You’ll gain access not only to detailed trading “touts” and real-time alerts such as the one above, but to a 24/7 chat room that draws veteran traders from around the world.
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC,
is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.