The Top Story of the Weekend is the Junior Gold Miners ETF GDXJ.  Net assets have increased ~440% since the start of 2016.  It’s now so large they’ve had to stop creating new shares.

Here’s some quick perspective about how big this thing has gotten via

“…There are 10 Canadian companies that the ETF owns where its ownership percentage is more than 18%.

For six of those companies, the percentage would be even greater, but presumably, the fund doesn’t want to exceed the 20% level, which, under Canadian rules, would force the ETF “to automatically extend a takeover offer to all remaining shareholders at the same terms,” according to a Scotiabank report.”

There are a lot of different ways to look at this.  All that really matters to traders is the gigantic increase in demand for Gold Mining ETFs.  If this isn’t a significant bearish sentiment characteristic for gold mining stocks, I don’t know what is.

This observation might not pay off right away, but we have a whole other universe of stocks to trade and invest in.  Why bother with a such a popular defensive trade in a perfectly good global bull market?

Trade ’em Well

Disclosure:  I have no position in any securities mentioned

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