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I say something like this at the bottom of many a PM cycle, but this time the opportunity is so doggone delicious, it merits a special graphic.
Don’t worry, I’m not going to beleaguer you with multiple charts tonight, as today is a travel day and I’m beat like an unwashed fifties-era poet. Let this one suffice, as it is, after all, my favourite stock in the PM universe — SLW, Silver Wheaton. And you luck-dawgs have been able to grab it a deep discount as of last week. Who knows? You may even be able to get a bit of a re-touch this, week, but alls the better…
What I really wanted to point out was the rarity of this cycle low, and it’s attendant rewards. Have a look see at what SLW did the last time it came this close to touching it’s 200-day EMA:
That’s right, there was a 59% move up from the last lows to the next sell off, and even more after that selling consolidated at the 50-day EMA.
Now here’s the even better news… SLW’s more volatile brothers, EXK and AG had even greater surges after their most recent visit to the deep lows. For EXK, the move was from approximately $5.50 to all time highs of $12.50 — an 127% move, while AG took it’s last deep cycle lows of approximately $10.50 to almost $27.00 — a 257% increase. Keep in mind that these more volatile juniors will be more painful to hold over long periods of time.
Nevertheless, one should learn to live with such fruitful pain.
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Gr8, stellar, whoopa-booyaa JIG!
Jake,
You’ve nailed the precious metals bull from the start. My top hat is off to you. The only other person who maybe comes close to you is too cool for school Bill Fleckenstein, rocking the sweater and quasi-mullet.
Thanks man. You should see my mullet — “party in back.”
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As any proper Southern Gentleman otter have. Thanks for the post! Ag time.
Jake, what’s your thinking about ANV–took a hit and hasn’t rebounded. Still worth holding you think?
apparently, i killed ANV.
I bought some yesterday. Its at support on the daily.
Plus look at the slows stoch or even a slow RSI. Interesting.
ANV looks like it put in its reversal yesterday. Should get the swing low today. It’s always a bit late.
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ANV has taken RGLD’s place as the queen bitch-whore in my portfolio. Now that I’ve started a position, it’ll be 14 months before it goes anywhere.
Jake,
I understand how undervalued these are, but how does buying now fit with the approaching D wave? Are you saying buy and hold through said D wave?
Arent we entering a C wave?
I’m not convinced we’re in a D-wave yet, H50, and I think we’ve got a little bit more to go in this last pop.
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Jake,
I guess what I asking is if it’s possible to get a big move up in SLW if we only have a couple more weeks left in the C wave or would the short time left mitigate against taking such a position?
Yes SLW is low hanging fruit.
I don’t post much but I do follow JG. I missed all the action because I was in Vietnam for three weeks. The internet connections were, um, untrustworthy to say the least. I would have loved to have picked up some EXK or AG at bargain basement prices but such is life. I hope to pick some up today at what would have been considered bargain basement prices a couple weeks ago.
It’s still pretty early, imho.
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What do you use full stochastic in conjuction with
Should be slow (7,3)… not sure why full in the above.
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For some odd reason, I expected you to start selling into this Silver rally but instead … your post says get ready for a wild leg up?! Once again, I find myself freaking out. I recall holding AGQ from $118 and you giving a target of double. I lost control and sold out close to $200. It went up another 130+ points from there.
This feels like the same. I’m in these big names. It’s going to be wild but the ride has just begun. Expect some 5% corrections but I’ve never seen you so active in the PPT in a long time.
Watching, and Waiting.
Thank you Jake.
Jake my good man, your thoughts on HL, AG, GPL and SVM?
Benevolant.
Don’t forget CDE.
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Jonti = schadenfreude
Hey, so am I understanding it right, that a small nibble on SLW over here would not be a foolish buy ? (it’d be my first attempt at PM play) Thanks!
Nothing??? Crickets????
would like to see SLW get over the TL from July. Looking at most oscillators, esp MACD, looks ripe for a run for the highs.
Sorry all, i was returning from the doctors….
My anal orifice unexpectedly widened over the last couple of days. I have been in soooo much pain…
You’d better get used to that feeling…
Any thoughts on SLW’s possible $ 38 resistance?
38 is an old higher low + there’s an ascending trendline right at 38 from July last year. If SLW can get above that’s a good sign.
I noticed something pretty amazing just now, if anyone uses fibonacci extensions. Draw a fib extension from the swing low of last July to the swing high of Dec, then drag to the swing low in end of January 2011. The resulting fibs have tremendous amounts of gravity as SLW has stopped at every major fib extension except the 50%, which I except is the next stop at ~40.80 if it can get over 38. 38 is the 38.2% extension from January’s swing low, which lines up perfectly with the ascending TL from July, as well as the lower high from the last move up. 38 looks to be pretty important…
jake grab your pm nuts, jim rogers to start selling all his treasuries. me thinks him and Gross are signaling the move to silver. drop your cock and pull your socks yall.
Mr. Rodgers is a cuckoo clock. He comes out and says this every two years…
Shit .. Gary just said to sell evrything!
Oh no! Mr. Billlllll!
A SNL ref from the old days? Are you kidding me? LOL
I want a Gint post. 🙂
Don’t believe da hype.
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