Wednesday, September 22, 2010

Gold Stocks

For the past 12 months the mantra around here has been trend following.  In mid-June I introduced a basket of gold stocks in the subscription service because it as evident that gold was in an extended UP trend and we needed exposure to the sector beyond GLD and SLV.  Yesterday we added a new pick to replace KMKCF which is being acquired for $2.60 per share.  Eventually I'll reveal the new pick here, but for now, its a subscriber-only pick. 

Nonetheless, here is a graphical representation of how some of the gold stocks in the portfolio are trending along with Gold and Silver.  When a sector is in a trend, this is what we want to see from the individual picks from that sector.  This also argues strongly for adding a few more names, especially from the juniors which are generating some excellent percentage returns.


 ANV Daily Trend Model


AXU Daily Trend Model


GSS Daily Trend Model


TRE Daily Trend Model


GLD Weekly Trend Model




Past performance is not a guarantee of future results.





3 comments:

T said...

Alot of heated interest by the frenzied investors now trying to chase the precious metal stocks like they just discovered something for the first time......is a set up for failure now for those who are chasing after a train that left the station back in July, and February before that.

The time to buy is....at the bottom....

not at the top.

The good news is that this sector exhibits large swings up and down and there will be another better time to buy the miners.
now is not that time.

with the small exception....that IF you can find a few select stocks that somehow havent soared in recent weeks,and are still in a fair value zone, they could be ok to buy.

but great care and due diligence is essential because

there may be a reason why a miner has gone sour and lost its value.
an example is JAG (jaguar mining)
it was one of the hotter miners last year and has tanked this year and there is a reason why it tanked and is still struggling.

Other miners are up and coming players with star potential....that are still hovering near enough to a fair buy zone that they could be good to buy now

I see International Tower Hill Mines (THM) as one of these....in the 6 dollar zone.

Watch Eldorado Gold, (EGO)correcting now.....I like it at and below 17.

Watch Minco Silver (MISVF)

the chart will tell you what a fair correction and buy zone ought to be.

Just dont Chase the soaring stocks. thats a recipe for suffering.

Let them come back to you,and if they dont, just let them slip away.

SLW is one of the best and most important PM stocks to own..... but it has slipped away too far gone right now for those who dont own any.

SLW correcting to 20 might be ok. correcting to 18 would be much better.

All the miner stocks must be selected with great care.

I see very few right now that are still ok value at current prices.

T said...

great comments ,T

t said...

thanks,T