NFTRH identified rising risks in gold stocks well in advance, and readers were prepared in an environment of intense bullishness. Well into the ensuing correction NFTRH22 (Feb. 28) pointed out potential for additional downside and noted low risk buying opportunities on four gold stocks: "I believe these have lower to go, and low risk 'bottom feeder' opportunities are noted for future reference... I do not want you chasing. I want you ready for future opportunities."
Two of these stock have hit the downside targets, while two others have, as yet, not done so. Note that NFTRH still holds all four and barely feels a blip during the gold stock correction, has managed risk, is well aboard the 'hope' trade (infrastructure trade, make-work trade or whatever you want to call it) and is enjoying the moment as a bull, while waiting for the alternately fearful and greedy counter party to show up. It's just a trade. Gold miners are the only sector that stands to see margins consistently improve in the current environment, for all the reasons noted repeatedly when it was time to be bullish.
As for NXG, NFTRH's measured target off of the bottom was hit (and exceeded) before a healthy pullback began. As MACD triggered down, confirmation came in and it was time to look for opportunities. These things can take weeks, and patience is required. NXG is not out of the woods as the support could be tested again and there is of course the ever present possibility of new lows for the move. But this is a game of risk management and opportunity. They will never ring a bell for you at the exact correct moment. On the plus side, that could be a cup (although I like to see the right side rim slightly higher than the left) and that could be a handle. And that could be a target way up there at 2.50, conveniently right at visual lateral resistance.
NFTRH is not primarily a stock picking letter. Note however, that a new NOBS report on a highly cashed up gold/uranium exploration company will be out with this weekend's NFTRH25. It is a stock that NFTRH has patiently held for months now based on its risk profile, substantial cash levels - resulting from the combination of the gold and uranium assets/operations - and of course, the chart, which has been in one of those oh so painful (they can be the best kind, long and drawn out) bottoming stances for months now. But of course stocks are part of the equation as we go about defining the 'new normalcy'.
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