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….
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