Are you going for the gold on this pullback? Why not trade along with George? Check out the chart of Barrick (ABX). (July 20, 2016)
ABX GLD GDX ABX
I want to look at Barrick Gold ( NYSE:ABX ) here. Why? Because gold itself has been correcting for a bit, for about almost 2 weeks, not in a big way but just pulling back doing the zigzag thing. It could pullback further, but if this trend is going to continue, it’s close to printing, it’s low, then it moves higher. So we look at that, we look at the GDX ( NYSEARCA:GDX ), this is the Gold Miners, and we can see this could pullback a couple dollars and be right at a great buy point. So that takes me to ABX ( NYSE:ABX ), which is a component of the GDX ( NYSEARCA:GDX ). This is George Soros, that wonderful philanthropist, just such an awesome guy. He’s long this stock. If you want to trade along with George here’s your trade, of course he got in at a lower level, but I doubt he’s selling yet.
So what I would suggest doing here is, take note that in a week the company reports earnings. That’s kind of a big deal, so you definitely need to know that. But if this stock starts catching a bid tomorrow, you’ve got a good opportunity to buy this stock at a low price. Low relative to what the trend is. You put a stop just a little bit below this 50-day moving average and you’re getting an uptrending stock right at support. If the pattern continues, you’re good. If it doesn’t, you took a small loss. This is how I want you to be looking at trading this stuff.
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