Stay Enterprising During Times of Grave Danger

An afternoon downside reversal in the gold miners may very well signal a respite in the selloff in the broad market. Either way, as far as trading the precious miners, themselves, I am welcoming a brief reset to set up another long entry in the improving sector. 

On the updated GDXJ (ETF for junior gold miners) daily chart, below, the red reversal candle, as it stands now, would possibly mark a sign of near-term exhaustion after a potent rally dating back to last week.

That rally also happened to be an important technical breakout, clearing multi-year resistance and rising in the face of seemingly large-scale skepticism about whether this breakout is, in fact, legitimately the start of a new bull run for gold and her miners. 

But names like AUY KGC NEM PAAS WPM, among others, have enjoyed brilliant initial surges in the precious complex. 

Mind you, I am not referring to a major reset but instead a 1-3 day pause. Recall that the first leg higher in a new bull run often "locks out" patient longs looking for ideal entries (while "locking in" trapped shorts) by not pulling back much. Thus, I am prepared for miners to only pause a day or two and so do rather benignly after perhaps an initial shakeout. 

Precious metals and miners sure have remained enterprising during the Dollar rally, which could have easily derailed the gold move, and found bids on Corona Virus fears. Now comes the true test as to whether they can keep the momentum going by turning in a shallow consolidation near-term.