GDXJ – Is the Rebalancing FINALLY Over?

by FI Fighter on June 16, 2017

in Precious Metals Updates

Well, the day that we’ve all been waiting for has finally come and gone… Maybe?

Everyone anticipated a HUGE selldown in many of the stocks held in the GDXJ ETF… and the market did not disappoint. Or did it?

Here’s what transpired today for a few of my holdings (and some others).

Klondex Mines (KLDX)

Average Daily Volume: 1.48M shares

Today’s Volume: 12.97M shares (+776%)

Kirkland Lake Gold (KL.TO)

Average Daily Volume: 1.40M shares

Today’s Volume: 36.73M shares (+2,523%)

Richmont Mines (RIC)

Average Daily Volume: 503k shares

Today’s Volume: 3.74M shares (+643%)

Fortuna Silver Mines (FSM)

Average Daily Volume: 1.92M shares

Today’s Volume: 14.17M shares (+638%)

Endeavour Silver (EXK)

Average Daily Volume: 2.41M shares

Today’s Volume: 10.21M shares (+323%)

Teranga Gold (TGZ.TO)

Average Daily Volume: 557k shares

Today’s Volume: 12.80M shares (+2,198%)

Semafo (SMF.TO)

Average Daily Volume: 2.33M shares

Today’s Volume: 33.09M shares (+1,320%)

Continental Gold (CNL.TO)

Average Daily Volume: 796k shares

Today’s Volume: 12.61M shares (+1,484%)

B2Gold (BTG)

Average Daily Volume: 5.22M shares

Today’s Volume: 20.76M shares (+297%)

Resolute Mining (RSG.AX)

Average Daily Volume: 8.22M shares

Today’s Volume: 35.16M shares (+327%)

And the mother of them all…

First Mining Finance (FF.V)

Average Daily Volume: 1.16M shares

Today’s Volume: 81.61M shares (+6,935%)

 

Holy moly!!!

 

And a weekly update for some individual holdings…

Please Note: The late action selling occurring at/near/after market close was most definitely GDXJ unloading and probably not factored in the table below… I’m guessing we’ll need a few days before the dust is settled and the new share count is updated? I’m speculating, of course… Nonetheless, these numbers were obtained straight from the horse’s mouth…

From VanEck.

I made the mistake of not tracking shares also held in the GDX ETF, which is a HUGE component of the GDXJ (see below). FYI, there are a few duplicate holdings that are found in both ETFs (Klondex Mines, Resolute Mining, Kirkland Lake Gold, B2Gold, Semafo, Fortuna Silver, etc.)…

GDXJ Holdings: As of 6/16/17.

Btw, GDXJ holding of GDX reduced from 6,801,703 to 5,101,277 shares, looking at yesterday (6/15) to today (6/16).

And I have this screen capture from a little over a month ago…

GDXJ Holdings: As of 5/2/17.

Feel free to compare to your heart’s content…

We saw some MASSIVE volumes today! Surprisingly (or not), despite all the trading, the share price of most of these stocks didn’t really do anything noteworthy (the “panic” selling at market close seemed to be very well coordinated/orderly/premeditated)…

Before today, everyone (and their mom) had been speculating and anticipating a steep decline and there were many shorts who were front-running the GDXJ rebalance…

Well, ultimately all that forecasted destruction in these shares definitely did NOT happen today!

My own personal strategy over the last few months has been to buy on the dips and dollar-cost average (DCA) my way down, spreading out my purchases into spaced out tranches.

How come?

Like always, because I don’t know jack shit about anything…

The markets ALWAYS surprise, no matter what!

For the life of me, I’ve never understood how some people can have so much confidence (hubris) to say things all “matter of fact” and act like they know everything…

WTF is the point?

Seriously, if we were all that damn good, everyone would be a billionaire…

Anyway, even now (after the fact), I still have not a clue as to what will happen next week…

 

Will these gold stocks start their recovery?

Consolidate around these levels?

Or is the worst still to come?

 

I have no freekin’ idea… Your guess is better than mine.

 

So, I’m preparing myself for all of those scenarios…

 

I’ve got cash to add more cheap shares…

I’ve got enough positions built up to sit back and do nothing…

I’m on vacation, so if we’re gonna be consolidating awhile longer, it’s all good…

 

“Buy low and sell high.”

 

 

That’s pretty much all I know…

 

Fight On!

{ 6 comments… read them below or add one }

1 Income SurferNo Gravatar June 16, 2017 at 6:56 pm

I initiated another swing trade in PAAS and also noticed the extra 10 million shares of volume in Klondex today. Don’t know what the future holds, but I have been shocked at the strength of Klondex….especially given all the selling in GDXJ. Hope you’re having fun on Island Time. Look me up when you get back. Safe travels
-Bryan

Reply

2 FI FighterNo Gravatar June 20, 2017 at 10:31 am

Bryan,

Great trade you executed there with KLDX and I’m sure you’ll hit another homerun with PAAS.

All the best!

Reply

3 JoelNo Gravatar June 17, 2017 at 4:13 am

the only thing iv got my eye on is the 27th of july, its a gann date 144 degree move, usually the s&p500 & dow top 72 hours before or after that date. ( im not a market timer but iv studied ganns original stuff)

its my hope that when the markets move down, smart money pours into gold & silver stocks… well overdue… lets see!

thanks for your upbeat update, cheers Joel.

Reply

4 FI FighterNo Gravatar June 20, 2017 at 10:32 am

Joel,

One of these days and hopefully soon I do hope you’re right and a flood of money goes into these precious metals and their stocks.

It’s a game of patience for now.

Take care!

Reply

5 ChillywitNo Gravatar June 17, 2017 at 9:54 pm

There’s been no news or announcement by Van Eco that the rebalancing was completed yesterday as they’ve indicated in the past. Rebalancing can still be ongoing.

Reply

6 FI FighterNo Gravatar June 20, 2017 at 10:32 am

chillywit,

It looks like it’s done now with the 6/19 update. Check it out.

Cheers!

Reply

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