A Gold Corona

I mentioned in my opening post that gold would play a part in my portfolio. To that end, I have opened a position in RING, a goldminer ETF. There’s a bit of a problem here, as I would have preferred to own/trade GDX or GDXJ as they are far more liquid. However, as we hold those at my employer I would require pre-clearance to trade them and could be prohibited from selling the position if needed. I am going to have to punt on day trading GDX options for now.

That aside, I have opened up a very small 1% position today in RING. This is off the back of the first time the S&P has drawn down more than 1% in several months. The decline is being driven by concerns around the “Corona Virus”. I may grow this position if gold breaks out of the resistance outlined below in orange.

This market feels very toppy and I will have a to find another way to play the downside (SPY puts?) if we do start to correct a little. It’s still early days, and I don’t have a strong enough conviction on the direction of the market to make any significant tactical trades. As previously mentioned, this market has not stayed down, I will need to see serious selling to join in. On the flip side, the market is so overbought, I don’t want out first “Buy-the-Dip” adventure to end in tears.