We hold a 200-share tracking position with a cost basis of 23.79. The failure of the last rally to reach a 26.14 Hidden Pivot where we’d planned to lay out some May calls suggests the weakness will continue, favoring a tradable low at the 22.74 target flagged her earlier. Although GDXJ is no more than $1.25 from a Hidden Pivot support where I’d suggested we should back up the truck, we’ll take a disciplined approach, using a stop-loss at 23.59 even if it means having to re-establish a new long position at a higher price. That number is four cents beneath the ‘D’ target of the pattern shown, and if it’s hit we should infer more weakness impends. The strategy is consistent with my entrenched habit of managing risk rigorously and precisely rather than averaging down when I “know” that a bottom is not far off.
