Tactical Update: Miner Concerns (PREMIUM-UNLOCKED)

The following post was issued to TLS members on April 29, 2021.

Miners are selling off — is the rebound over for them?

Still in a consolidation phase, gold miners (along with gold) did recently reclaim key near-term pivot support. Thus, as we expect the precious metals complex to embark on a new bull market up-leg once it emerges from the consolidation phase, we have been looking for an opportunity to buy gold miners back — into pullbacks to support. Yesterday, we saw the miners rebound strongly after testing close to pivot support. Today, they are squarely testing pivot support, so we are adding exposure back into the gold miners and junior miners. Here are the specifics:

  • We bought a starter position in the junior gold miners fund, GDXJ, near ~48.25 (we will look to buy another lot near ~47.20-47.60).
  • We bought a starter position in the gold miners fund, GDX, near ~34.50 (we will look to buy another lot near ~33).
  • We are also looking to add to our position in the gold fund, GLD, near ~164.10.

That’s all for now. As always, stay tuned to our DSS posts for further developments — they provide the most current updates to our investment portfolio and outlook. We touched on many of these potential moves in today’s DSS.


Disclaimer: JLFMI’s actual investment decisions are based on our proprietary models. The conclusions based on the study in this letter may or may not be consistent with JLFMI’s actual investment posture at any given time. Additionally, the commentary provided here is for informational purposes only and should not be taken as a recommendation to invest in any specific securities or according to any specific methodologies. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.