I Just Bought Gold Miners

Wait. What? I said "Sell the Gold Miners" in early May at Seeking Alpha. VanEck Gold Miners ETF (GDX), a huge ETF for large gold miners, was 50.37 and is now slightly higher (at 50.62). What gives?

Well, I am a very active trader. I go in and out all the time. Yesterday, I doubled my position in GDXD, a 3X inverse ETF of GDX, and today I sold off a lot. I am long GDXD in my IRA right now at just 3.8%. I bought yesterday in a range of $3.05 to $3.17 and my sells today were in a range of $3.23-3.38.

So, what's going on? Gold remains very expensive in my view, though it has gapped down two days in a row (as measured by GLD), which is currently at $301 and down from its all-time high set on 4/22 above $317. GDX made a new all-time high of $54.7 on 6/13. I started off being short GLD through GLL, but, thanks to the comments from readers on an article, I woke up to GDXD. Look at the action both since 03/31 and since 12/31 of GLD and GDX:

So. gold is still up a lot year-to-date, but gold miners are up a lot more. Why? Inflation, perhaps, the weak currency and lots of fears for capital markets becoming unstable are the reasons. And, people have been buying gold because they are getting pushed to do so!

While I have covered most of my short of miners today on the big move down in the price of GDX, I am still very negative. The biggest challenge for me is what to be most negative about.

I am most negative right this minute about the NASDAQ 100 (QQQ). SQQQ is 50.6% of my IRA right now. I boosted it today. Other positions include a short on Nvidia (NVDA) through NVD and NVDQ, totaling 17%, a short against SPDR Financials (XLF) through FAZ, which I have boosted a lot today and is at 24.8%, and a single long position in Boston Beer (SAM), which I actually trimmed today and is currently at 3.3%.

The gold miners are up so much this year, and the past 10 years:

Does this mean that they will go down? NO! But will they? I think so.

Might there be inflation? Yes, but this is not necessarily good for gold or gold miners in my view, as they have already run up a lot. I advocate TIPS for those who are concerned about inflation.

Good luck to all!