Trade Alert - Wanderer Financial - Stock Trading Newsletter for the Wandering Soul

Trade Alert

Posted on

Bought 20% size of JNUG @ $7.30
Target @ $10.95
Stop @ $6.98

We know the metals sector has been very frustrating to trade lately. We’d like just to walk away and forget about this sector. But from a reward to risk standpoint, the technical setup is too good for us to ignore. Gold provided a 9/20 crossover and is now rallying off of its 20-DMA at the same time that GDXJ provided a 2B. GDX is still slightly short of a 2B, but a strong showing today could easily print a 2B for that ETF also. As hard as it is to buy this sector, we are buying JNUG here. Technically, this is the type of setup that often precedes large moves. The stop is very close on this. Either the chart setup will hold and we’ll get a nice rally, or we’ll be out for a small loss.

The dollar is also rolling over, which could provide a lift to the precious metal sector. Of course, its possible that it will rally back above, but as of now, it is breaking down again.