Playing the Relatives; Chess Moves
While the GDX and GDXJ ETFs (for the senior and junior gold miners, respectively) negotiate their 50-day moving averages from the underside, I a electing to play a relative strength name in the group.
I wart long HL at $3.32 with a stop-loss below $3.10 on a closing basis.
HL is a top two holding in the GDXJ ETF. While it is low-priced, the stock is also liquid in terms of volume.
And as you can see on the daily chart, below, the stock is trading above all major moving averages, which is a rarity for the sloppy miners these days.
This play enables me to benefit if the miners follow-through higher on today's rally with a technical leader in the space, without likely taking too much pain if the group gaps down tomorrow and fizzles out after yet another rally attempt with the Dollar weakening.