Junior gold miners experienced a nice technical rebound from severely oversold levels earlier this month. And that’s provided up to a 10% gain in Direxion Daily Junior Gold Miners Index Bull 3x Shares (JNUG). It’s also served to reduce losses in GDXJ and SLV in the process.
But we think that the easy money has been made on JNUG.
A number of factors support this view, including…
- E-Wave cycle forecasts calling for lower prices for precious metals into early June.
- Lack of upside after the terror attack in the U.K. and the recent equity rebound may tamp down safe-haven demand.
- Potential for oversold bounce in the U.S. dollar to offer headwind for precious metals in near term.
We still think we can squeeze some more upside out of SLV and GDXJ over the short-term. In fact, silver is performing better relative to gold during the advance and already broke out above resistance. That’s why we recommend that you to continue holding those positions.
Here’s what we recommend:
Place an order to sell ALL of your shares of the Direxion Daily Junior Gold Miners Index Bull 3x Shares, symbol JNUG, at the market. Then, cancel your good-till-canceled protective sell-stop.
Get this order in right away.
Lastly, a reminder on Sibanye Gold Ltd. (SBGL)…
The exercise period to buy Sibanye Gold starts tomorrow May 24th and ends on Tuesday, June 6, 2017. So please make sure you contact your broker before the rights offering expires. You don’t want to miss out.
Additionally, we want to make sure you have the appropriate protective sell-stop working on your position at $4.19 good-till-canceled. This should have been adjusted from the initial level of $6.89 prior to the stock trading “ex rights” by your broker.
Hold all other positions and stay tuned for new trades coming your way again very soon.
Good investing,
Mike and David
