Just a quick note in which I wanted to congratulate you on your decision to be shorting the junior mining stocks and on today’s profits that stem from it.

Gold price plunged below $1,900 and the GDXJ ETF just moved to new 2023 lows. That’s also the first time this year when its trading below $32.

Certainly, the decision to increase the size of the short position from 50% to a very large one (300% of the regular position size) on Sep. 20, when the GDXJ was trading close to $36, was a profitable thing to do. And you did it (if you followed my opinion on that matter that is).

Think about it. The year started with a rally, then we saw a bigger decline, another upswing and now we’re witnessing a massive decline that started in April. Back then, when the GDXJ was topping, there were multiple bullish voices out there – some people that were holding to short positions at that time were scared, and very few people wanted to be entering them at that time. That’s just how markets work, and that’s what makes making money on the markets so difficult.

I’m here to help you in those moments, but ultimately it’s your decision to keep the position that has the biggest potential and to stay strong when the market temporarily moves against you. Let’s keep the above in mind at all times – today we’re celebrating, but more difficult times will come. I will be there for you, but if you prepare yourself mentally for those times in advance, it will be easier for you to stay on track and to make money in the long run.

The S&P 500 Index just broke below its rising support line, so it could decline some more in the very short term and then we could see a corrective upswing. This could very well imply a pause or a small rebound in mining stocks. If it happens, please keep in mind that it’s something normal and natural – it doesn’t have to mean that a big rally is starting.

While I might change my approach here if new signals emerge, for the time being, I plan to keep the current profitable position in the GDXJ intact, in order to allow the profits to grow even further in the future.

Also, please keep in mind that it’s still possible to extend your subscription for up to three years (at least by one year) with a 20% discount from the current prices. This effectively protects you from price inflation on our end for a long time (everything will go up, including our prices) and it ensures that you’ll be prepared for whatever happens on the market – with regard to my assistance on that matter. Please reach out to our support ([email protected])– they will be happy to assist you and make sure that your subscription days are properly extended at those promotional terms.

Again, congratulations!

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

Thank you.

Sincerely,
Przemyslaw K. Radomski, CFA
Founder, Editor-in-chief