Briefly: We are moving the stop-loss levels higher for GDX and GDXJ.

In addition to moving the stop-loss level for gold higher (earlier today), it seems that it would be good to increase it also for the GDX ETF and the other proxies for the mining stocks sector. In case of the GDX, we will move the stop loss higher, a bit above the lower border of the mid-August price gap - to $20.16. We are moving the stop loss level for the GDXJ to $29.67.

Please note stop loss level are only binding for unleveraged ETFs, the other levels are provided only on an approximate basis. This information is provided in all regular Gold & Silver Trading Alerts (including today’s regular Alert) in the paragraph that starts with “Since it is impossible to synchronize target prices…“. Consequently, since the stop loss levels for GDX and GDXJ were not reached, the positions were not closed.

As always, we’ll keep you – our subscribers – informed.

To summarize:

Trading capital (supplementary part of the portfolio; our opinion): Full short positions (250% of the full position) in gold, silver and mining stocks are justified from the risk/reward perspective with the following stop-loss orders and exit profit-take price levels:

• Gold: profit-take exit price: $1,062; stop-loss: $1,236; initial target price for the DGLD ETN: $82.96; stop-loss for the DGLD ETN $52.77
• Silver: profit-take exit price: $12.72; stop-loss: $15.16; initial target price for the DSLV ETN: $46.97; stop-loss for the DSLV ETN $31.37
• Mining stocks (price levels for the GDX ETF): profit-take exit price: $13.12; stop-loss: $20.16; initial target price for the DUST ETF: $80.97; stop-loss for the DUST ETF $28.67

Note: the above is a specific preparation for a possible sudden price drop, it does not reflect the most likely outcome. You will find a more detailed explanation in our August 1 Alert. In case one wants to bet on junior mining stocks’ prices (we do not suggest doing so – we think senior mining stocks are more predictable in the case of short-term trades – if one wants to do it anyway, we provide the details), here are the stop-loss details and target prices:

• GDXJ ETF: profit-take exit price: $17.52; stop-loss: $29.67
• JDST ETF: initial target price: $154.97 stop-loss: $64.28

Long-term capital (core part of the portfolio; our opinion): No positions (in other words: cash)

Insurance capital (core part of the portfolio; our opinion): Full position

Thank you.

Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager

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