Gold, silver & the mining sector have all reached what I’d consider a minor resistance level and with many of the mining stocks quite extended, I’ve decided to temporarily reduce exposure to the sector via booking profits on several of my longer-term holdings, including the ABX (Barrick Gold Corp) Active Long Trade which has now hit the first profit target today (update to follow).
I continue to remain longer-term bullish on gold, silver & the mining sector and plan to recycle back into most or all of my mining positions soon, even if the sector moves quite a bit higher before pulling back. Longer-term traders & investors need not be overly concerned with trying to game all the shorter-term zigs and zags of the precious metal & related mining stocks but as an active trader, I will often attempt to sell the rips & buy the dips, even with longer-term swing trades & investments.
As the yellow arrows on the GDX daily chart below indicate, at this time I am looking for a pullback to around the 22 area (about 1 point or 4.5%) before adding back exposure to GDX and select individual mining stocks. Should GDX continue considerably higher before pulling back, I will update my thoughts/trading plan as we go.