Swinging for the fences, we’ve held onto a round lot with a profit-adjusted cost basis of 116.20. I’m going to recommend selling it on Friday’s opening for a theoretical gain amounting to $7708 at Thursday’s closing price. My reason for doing so is that HUI has sold off sharply after topping precisely at a 207.76 rally target that had been two months in coming. This suggests that at the very least, it will take a couple of weeks for HUI to consolidate sufficiently to move higher. Of course, there is always the possibility that the recent top will prove to have been an important one. If so, we’ll look at possible plays in DUST, an ETF with leveraged exposure to price declines in mining shares. In the tout above, you can find a technical prospectus for this issue. ________ UPDATE (April 15, 10:08 a.m. ET): Exit on the opening came at 194.28, producing a theoretical gain of $7808 for each round lot held since the initial trade. For now, do nothing further. (Note: In practice, because HUI does not trade, any of its 15 component stocks could have been substituted and would have produced an equivalent gain. Goldcorp, a highly liquid vehicle, or options on the stock, probably would have worked best.)
