BY ANDREW GIOVINAZZI
March 11, 2024
Yo Pit Crazies,
The Market Vectors Semiconductor Index ETF (Ticker: SMH) is on a tear and I have to admit a decent amount of my tech participation has been through that name.
I have cut it back 50% over the last couple of weeks.
I still like AI but am not adding anything directly at these levels.
The trading opportunities will be huge in our products like Trading Desk and Trade Zone for SMH. Trading is not investing.
SMH 30 Day Chart
GDX 1 Year Chart
The Humphrey Hawkins testimony by Chairman Powell did bring a new old name to my list.
Gold is straight up this year
SPDR Gold Trust ETF (Ticker: GLD) chart is below. It is rocking even as GDX is just starting to rock. GDX is only up for a year and is undervalued by any normal metric. Gold is not sexy and GDX did not see any money but if SMH loses some luster, gold names might end up as an inflation haven. Last week did see some action. I like to see real momentum.
1 year GLD chart
The gold rally means inflation is not dead no matter what the knuckleheads in DC say and the HH testimony locks in the Fed is taking a blind eye to USGOV spending.
I am adding GDX to my Div+ Investing Strategy this week. The problem is the dividend comes in Dec so I will have to invent dividends in the meantime. Join me and learn how to do that.
To Your Trading Success,
-AG
Andrew Giovinazzi
30-Year Trading Pro
See what's hot at option pit
CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain
DELTA STRIKE: VLY Mar15 8 puts closed for a 88% gain
PFE May17 26 calls closed for a 66% win
OP MENTORING: SPY Mar22/19 510 put calendars and 520 calls for 6.4% gain
OPTION SHOPPER: ERX Mar28 65 calls closed for a 90% gain