[youtube:http://www.youtube.com/watch?v=IA8QrOAghZ0 450 300]
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I started selling some of my QLD horde today, only to turn around and plow those winnings into more AG, SLW and EXK.
Why silver? Mostly because the happy silver mining family was bludgeoned like a prize veal on the night before the St. Anthony Festival these last few weeks, and I like the reversion to the mean theory — no matter how temporary that reversion might be.
You know I started accumulating the PM ETF’s, GDX, GDXJ and SIL last week in order to capture some of the rebound that I saw coming from that sector. Well this week I will concentrate more on individual names like the above in silver and RGLD, AUY and ANV in the gold mining sector. I might also dabble in those insane brothers XG and XRA.
Just to give you an example of what I’m seeing here, and why I think there’s still a lot of room in these PM names, here’s my markup of the EXK weekly.
Note how last week the price bounced off the long term trend line only to leave that long tail in a hammer? And note also how most of the stochastics are headed north once again? I am seeing that in a lot of these names. Again, it can all change on a dime in no time, and believe me, I will be ahead of you, elbowing you in the chin as I run for the exits if it does. But right now, the dollar is on our side, and the momentum is coming back to these names.
Let’s have some fun while we wait for the deluge, shall we?
Best to you all.
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