While adding several mining stocks as active longs recently, I had repeatedly expressed my concerns about the recent bounce in the gold stocks likely falling short of most traders’ expectations. So far, that seems to be the case and also as stated earlier, my preference was to book partial or full profits at the earlier targets when most were hit a couple of weeks ago. The majority of the recent mining stock trades, IAG, SSRI, THM & BVN (within 1 cent) hit their first targets before pulling back and only a couple fell short of their initial target before pulling back.
I will likely remove some or all of the Active Long mining stocks as soon as I get a chance to review the charts. As my original thoughts were that the sector might make one more thrust to a marginal new low before putting in a more lasting bottom, longer-term traders might decide to give these positions a little more room with their stops or continue to gradually scale into (accumulate) their favorite mining stocks. I will, however, go ahead and remove GDX at this time as it has exceed the previously suggested stop and was my “least favorite” of the group (remember: an ETF will hold stocks with worst looking technicals and fundamentals along with those with the best looking chart patterns and fundamentals, hence my preference for trading individual stocks over ETF’s).