Ladies and Germs I love it when my pain becomes your gain, and thanks to my “way too early” entry back into the precious metal miner market with both hands full of ham, you more cautious readers will have the opportunity to enter into the severely beaten-into-disability gold and silver miner market, which we’ve always characterized (lovingly) as Baby $HUI. One can best participate broadly in this market using GDX and SIL (and to a lesser more risky extent, GDXJ).
I am hoping the following chart will show up, as I am posting it on the rogue computer, but if not I encourage you to look at the twelve year monthly chart for $HUI, which limns the extent of this current bull in both gold and gold miners:
Note how we are oversold to an extent not seen since the beginning of this very bull… in fact, to an extent even deeper than in late 2008! That’s pretty incredible folks and indicates a strong ability to bounce hard here, provided that long term bull line holds.
Now I do expect we’ll get a pullback and maybe even two from this strong resurgance, as the various bottom scrapers and chicken littles bail with a quick profit, so be cautious. Go small here in this first wave, no matter how tempted you may be to go all in. You should have plenty of opportunity, all the way to the $500 mark and maybe even $520 on the index.
Best of luck and fortune to you all.