We have been looking at the precious metals and miners as opportunistic trading vehicles in recent months. Back in May, the play for a continuation to the downside. Recently, the idea was to flip the script and play along with an exuberant bear market rally. Perhaps it would be the big, bad, bottom, but the jury is still out as far as that is concerned.
Last Thursday, we looked at the battle plans for playing NUGT, the very aggressive, tripled-levered long ETF for the gold miners.
With a $6.10 trigger, I entered at $6.11 inside 12631 and sold the remainder of my position this morning at $7.60.
At this point, many major gold and silver miners, like RGLD and SLW, are back up to their upper daily chart Bollinger Band. So, I would not feel compelled to chase at this point if you missed the move.
With stocks like Silver Wheaton (SLW), which I profiled earlier last week, I would look for $23.60 to now become support on any pauses after this run.
If this bear market rally/bottom has legs, we should see a mild pause this week followed by more upside. Again, we are still dealing with badly damaged charts on a longer-term basis, which means you play like a sniper in the World War II bell tower–Aggressive, precise, ready to void the mission at a moment’s notice.
Or you don’t play at all.
EXK?
Great move in EXK, too. I want to see $4.20 hold as support now. Gapping above upper daily Bollinger this morning so tough for me to chase it here.
What do you think of a really tiny gold miner in ghana. AKG
Nice rally…I’d want to see it close and hold above $3 now as the next step for more than a bounce.
Stay out of Africa unless you are Meryl Streep. The political risk in these climes are not worth it.
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