Early this morning, October 1, 2013, gold hit over 1337 (up $10) and was in low 1330s at 7 a.m. NY time. NUGT was $51.90 up $1.64. Then gold fell to 1323 & NUGT $50. Gold ran stops under 1319, trading down to 1315, NUGT fell to $49. In Stock Talk, I did a running commentary, as gold broke down to 1300 and ultimately stopped at 1284.30 before bouncing. I bought gold today 1325, 1316, and caught a contract at 1289, that I sold out at 1296 for a small profit. I bought NUGT as low as $47.50 but it is now under $46. I have seen better days. What a contrast to yesterday!
Well, with today's action, the stops have been run below 1319 and 1300 in gold, so the bears can declare victory on that score. There should be good support in gold between 1275 and 1280. But of course it may not stop at support. Who knows where the bottom is at this point. What I do know is that the next rally point in both gold and NUGT, should be much higher than where we are now, and I must stand pat and wait for better prices. The only mistake I could make now is to panic.
I was looking for an up week in gold when this week started and I am still looking for an up week in gold for this week. It is not out of the realm of possibilities. The Australian Dollar caught a bid overnight and the U.S. Dollar is weaker so there is no reason for gold to be going down except to make small traders give up and take their losses. I still believe that under $25 in GDX and under $50 in NUGT are "crazy cheap prices" and in the future we will find out how crazy cheap these prices were. I don't know where the bottom is on this current move, but I will be holding the shares I own to give myself every opportunity to make a profit. I will sell out half my position on rallies, even if it is at a loss, if I am confident I can buy back lower. I will aggressively trade today, tomorrow, this week, next week, as long as it takes to not only get my money back but to turn this "dog" into a profit.
I know if I trade DUST or NUGT, I will be tested often. I will face adversity. It is a given. How I handle myself in the face of adversity, will determine if I am a winner, or a loser. I may ultimately lose, but it will not be for lack of determination & effort. I will leave it all on the battlefield. When you have done all you can do.....sometimes you just have to stand.....stand pat. I plan to stand on my position while trading aggressively to reduce my price whenever and wherever I can. Soldier on!
Disclosure: I am long NUGT.