5 reasons to short GDXJ (Buy JDST) - Short Term idea
. When Gold was at today's level, GDXJ was around $36 not $39.50. It is overbought
2. Gold is priced with a 59% chance of a 50 bp rate cut from the Fed at the end of the month. The Fed will likely only drop rates by 25 bp and therefore, gold will likely drop.
3. Resistance for GDXJ is at $34.5. This level will be challenged before it moves back up.
4. What goes straight up usually comes back down as fast. GDXJ
5. Double top on Gold
This means JDST should hit $25 as Target 1 and $35.50 as Target 2
This is a short term forecast. I would say days or one month tops. I will publish another one when I switch to JNUG, likely sometimes in August.
2. Gold is priced with a 59% chance of a 50 bp rate cut from the Fed at the end of the month. The Fed will likely only drop rates by 25 bp and therefore, gold will likely drop.
3. Resistance for GDXJ is at $34.5. This level will be challenged before it moves back up.
4. What goes straight up usually comes back down as fast. GDXJ
5. Double top on Gold
This means JDST should hit $25 as Target 1 and $35.50 as Target 2
This is a short term forecast. I would say days or one month tops. I will publish another one when I switch to JNUG, likely sometimes in August.
Note
She scared me a bit this week, my $16 stop was 2 cents below its low of the week. I won't claim victory yet but it sure is promising. Of course, this week with the Fed's meeting, we need to keep a close eye on it. Fluctuation could be at the rendez-vous. Wednesday could be interesting...Good luck!
Note
Just an update... I am still in JDST but I cashed in some small profits and trimmed my position to 1/6 while lowering my average cost because of the FED's interest rate announcement due tomorrow. I could, add , sell off or revert back to JNUG tomorrow depending on the announcement. NOBODY knows what will transpire from the meeting neither how the market will react. I advise you to be cautious. I still think it can be an idea that pays off but tomorrow is going to be wild. It's all about risk management. Also, for newbies, beware that it can get volatile overnight tomorrow and that the immediate market reaction is not always in the right direction. Sometime it takes a couple of days for the dust to settle and the trend to confirm. Trade carefully out there and GOOD LUCK!
Note
As expected, it was a wild week. GDXJ however is now stuck at the major resistance and Gold hit a new high and is toping. Next week is JDST's week. Good luck!Note
I still have options in JDST. Exercising my patience here but I am looking for the next few days to see if gold retreats before I close this idea. It may still pay off because the stock market will bounce and therefore, gold may retreat and JDST could start gaining... We'll see...Note
This is my last week trying to get a bounce from JDST. I feel it might be this week... or it is over and I switch to long gold miners and silvers.Trade closed manually
I have closed this position. I want to concentrate on the stock market and gaz in the next 3 months. I will post then. I think gold may fly even more. Will look to add AGQ at some point. I will post then
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.