Loading ...Early Weakness=Buying Opportunity
If it’s Tuesday, it is a buying opportunity in the gold and silver mining stocks. Maybe it’s just coincidence(I doubt it) but the charts say today’s expected early weakness in the miners offers a great buying opportunity. My three favorites are NEM in the gold, with a target of 68 on the horizon and HL and MAG in the silvers. HL should reach 8.5 and MAG 24 on it’s way to new ATH’s.
As I have stated in the past, the quick backtest is the best thing that can happen. When the gaps created by Friday’s breakout are filled right away, the stocks can proceed with their rallies without having to worry that the gaps have to get filled along the way. When this is over, later today or later this week, it is onward and upward.
Sir CM,
I have agreed with you on many fronts in recent posts.
However, this pursuit of meagre gains in the popular, big name miners is something I strongly disagree on. Let me give you some reasons why
MAG makes up less than 0.8% of my entire miners portfolio. I last bought MAG thrice in the range of 11.83 to 12.24, May-June 2020.
I took partial profits in MAG from 18.66 to 22.70
HL makes up 0.3% of my entire portfolio.
I last bought HL at 4.84. I regret not having taken partial profits in HL, and will target for the 8s, if not 9s to do it.
I sold all of my NEM.
Bought it in the range 64-58 cost averaging down during 2020, when I did participate in it whole heartedly, in the vein of diversifying away from speculative juniors.
I sold all my NEMs in the 68s, and missed the run to 75 by a matter of days, such “sucky” was my timing. That was 5/10/21 to 5/13/21.
But the turn of events after that never made me regret my small, and even more importantly, short term, profits.
I think I’m better off speculating in a few new juniors/micro-caps.
My two cents.
GL
My post today pointing out three larger stocks with their short term targets isn’t meant to focus on short term nor to do so instead of the juniors. The juniors are long term holds and therefore there isn’t much new to post about, just buy and hold. The three I mentioned today are not instead of juniors, just leaders that should reach those price objectives in a relatively short timeframe. Everyone has to pick how they want to participate. I throw out candidates and targets based on the charts. You and others decide your own strategy and preferred way of participating.
Thanks Sir CM.
So, HL, MAG and NEM, are short term trades? Not long term holds?
Why not just buy GDX? And save one from any negative news in individual miners?
What is your take on GDX, based on the charts?
My question is: how should capital be allocated?
Also: Should I sell and take my 15% profit in AAPL?
No easy answers 🙂 and to each their own.
GL
I think my writing is very clear.You seem to be having trouble with what I am saying. You implied in your first comment that I was stressing chasing short term profits in the three stocks I mentioned over juniors(which I didn’t even mention). I tried to clarify for you that I agree with you about buying quality juniors(my criteria might not agree with yours or others) and holding for the long term. I did not say that one should trade the three stocks mentioned for the short term.I just provided my first targets(which obviously have to be met before one can get to longer term targets). Take my words exactly as I say them, don’t imply or add or subtract. If you have a specific question(which you often have) that is fine, I do my best to try and answer them. You seem to over think everything. You do what is best for you, based on your experience.
It is obviously your call but the AAPL chart says it has at least a little more to go. Since it is still making new highs let it run but keep it on a short leash.
Agree with you and been buying the dip and I am back to all in position, Buying SSRM which is the old Silver Standard but has morphed into more of a gold producer.
It looks like the Friday upside breakout was a FBO. Now PMs continuing to turn down, looks like back to the bear, I’m out, waiting for another setup.