Sellers have dominated for a month, and they are probably not finished. The 33.76 target is just a tad lower than the one posted here previously and should be used as a minimum downside objective for the near term. The good news is that you can back up the truck if and when GDXJ gets within a dime of the target, which it will. Also, you can short 36.46 if it is reached first on a dead-cat bounce. This should be done via ‘camouflage’, since this midpoint pivot may not show the kind of precise stopping power that I expect at 33.76. If and when that last number is reached, it will be more than a mere correction from the mid-March high; rather, it will be a full-blown bear-market, since the selloff would amount to 27% at that point. ______ UPDATE (April 21, 1:04 p.m. ET): Having fallen by nearly 8% since I aired the forecast above, GDXJ this morning has bounced 42 cents from within a single penny of the 33.76 target. If you got long near the bottom, please let me know in the chat room so that I can establish a tracking position for your further guidance. Please note that the bounce offers no guarantee of an end to this vehicle’s nasty bear market, only a very low-risk spot to try bottom-fishing. If the support is decisively breached, however, it would put into play a downside target that is going to shock some of you. Check my 12:52 post in the chat room for the precise number, which I will disclose in the touts section at a later date. _______ UPDATE (2:59 p.m. EDT): Since numerous fills were reported in the chat room, I’ll establish a tracking position of 200 shares with a cost basis of 33.58. This is based on a buy of 400 shares at 33.79 and imputes a partial profit of 0.21 per round lot to the position that remains after exiting 200 shares at 34.00. The so-far recovery high today is 34.49, meaning GDXJ has now bounced 72 cents since bottoming within a penny of the low predicted when the stock was trading significantly higher.
