A lot of the junior golds are looking good here and particularly appetizing on a pullback. GDXJ should be your default if you cannot pick out a couple of nice names, and it looks good on a pullback to just above $22.00. Put your buy in a dime plus or minus above that line and you should get something on what I believe will be a relatively imminent pullback. These boys have moved but I think its time to take a nap maybe for a day or two.
If you want to roll the dice a little, I like AAU here — the basketball league stock!
As you can see from the chart, its already run us quite a chase, from $1.55 a share in early August to over $2.80 today. We are late in the run and are due a pullback, probably in that $2.95 region marked above. Good news is you can choose any of those pullback entries marked above, or buy 33% at each interval to keep things smooth. My plan would be to purchase that one third either at the break of $2.95 or at the point of the first pullback. If we bounce from there, you can buy your second third at a break of $2.95. If it continues to break down you can accumulate all the way to the last buy point (approximately $2.45 or so).
In any case, remember this is a Mad Money type of investment, and not one to be throwing anything more than 5% of your portfolio at. This is the time these stocks run, however, so if you want to experiment, now is the time.
Best to you all, fellow youth basketball summer league players….
10 Responses to League Play
I am still saddled with VGPMX….what a nightmare…had i only bought GDX instead (which wasn’t too easy because i would have had to transfer funds) I would be up massively at this point.
That’s why I say stay away from these little guys in any reasonable proportions. The volatility is just not worth it. They’re fun, but everything in moderation, no?
Yes, Lesson Learned Senator.
Someday i will break even, and at that point I shall undo this mistake.
Got up too late and missed the GDXJ buy point. Well I’ll wait a day or so and see if I get another chance. Hard to get up at 3:30 am for the opening over here lol.
Yes, the one downside of Paradise.
You could just throw the buy stop in, that’s what I do.
What about AUQ ? It’s been a nightmare thus far and I am having a hard time deciding on selling for tax loss purposes or doubling down.
It seem like the sell off may have been overdone and, especially at this price, there is great value in the name considering its asset base.
Not sure. Wouldn’t double down on it yet, as it’s not really shown that it’s broken the downtrend yet.
thank you Jake. Grandma has the $100 roll look in here eye.. hoping she doesn’t get overheated first.
hope all is well with you sir.
I’m full huggie bear aflame here with AAU. But luckily I don’t give 2 shats because I have time to waste. She has and will continue to go up. I buy on the dips and I consistently look like a genius thru no fault of my own. It’s all due to Jake. If you’re a long term investor, suck it up and buy. Unless, of course, you’re a Dem