US Markets are range bound while commodities broadly are outperforming
Ed Moya joins me today for a comment on the US markets and what is supporting the range bound trading. We then switch focus to the commodities sector which across the board has been performing very well. It’s important to note that it’s not just gold and silver that are moving higher.
Click here to visit the OANDA website and read over Ed’s daily note.
As Ex is lightening up a bit, or Matt doing some selling, I note that BBB sold off a bit today. I’m trying hard not to repeat my mistake from last time and so am looking to when to begin peeling some profit. Am hoping to keep the finger off of the sell switch for a couple more weeks.
Hi Canuckski – I’m mostly looking to lighten up on the extended Gold stocks over the next few weeks, but haven’t touched my BBB yet, as we are are still awaiting drilling news from Hog Heaven and Thorn over the next 2 weeks, and since I believe this news will move the stock notably higher. I’m waiting until after those Brixton exploration campaigns are announced and digested to sell into that strength.
I’ve mentioned a few times that I’m not really trimming back my gold or silver explorers that have active drill campaigns, as the reason I’ve been adding and holding them is for this years exploration results (which can be the primary driver of share-price in drill plays). The one exception was I completely sold out of Vizsla last week on such an epic move, but then still got back in with a much smaller position when it started pulling back in shareprice, because they have much more drilling to announce this season. If it pulls back substantially more, then I’d even like to add back more Vizsla but it got way ahead of itself there for a while.
Most of the companies I’ve been trimming the last few weeks are Gold Producers and Gold Developers that have had extended runs, and I did trim a few of the larger Silver producers in my portfolio. Overall I’m still more bullish on Silver miners though, and expect them to have more steam as Silver catches up to Gold in price, and especially if Silver gets back up north of $20 again.
Cheers!
Correction – regarding BBB Brixton that should have said ” we are are still awaiting drilling news from Hog Heaven and Thorn over the next 2 Months.” (not weeks)
Silver closed up to $19.65 (just a dime lower than 2019’s high of $19.75). As noted the last few weeks, and again yesterday, It would be great to see a closing price in Silver this week above that $19.75 peak from last year, to confirm the new bullish impulse leg is underway. It’s very close here and just needs to punch through after failing at resistance the last 2 days.
OK, great to know Ex. I’m a fan. I always appreciate that when you write, you generously take the time to share more. Thanks very much for that.
Thanks Canuski, and yes, always happy to expand or dig deeper on an idea, and believe you have the right idea of holding most companies through any mild corrective action over the next few weeks.
I’m a very active trader and will get out and get back in a position in just a few weeks (or even a few days), and am normally honed in on the daily charts when I’m discussing pullbacks or advances, so my comments aren’t about the longer term picture (which I’ve been bullish on since Jan 2016 and am for years into the future). The majority of my reflections are about short term swing trades I am discussing in miners, but from time to time will confirm that yes, longer term on the weekly and month charts we are still mid-way in to a solid bull market.
Sometimes people misinterpret these comments and think I am saying to sell completely out as longer term projections or think I’m discussing a much larger corrective move than I actually am. I’ve been consistently bullish for 4 years about Gold and the Gold miners, ever since they took off in Jan of 2016, when there were not many voices acknowledging the bullish move higher in the yellow metal and the miners, and I’m very bullish on Silver and the Silver miners for the next few years from these levels.
I hope your investments are incredibly prosperous and you have a fantastic 2020, as things have been getting exciting in the PM sector, and most big surprises will likely still be to the upside. Cheers!
BBB had drill results out this morning
https://ceo.ca/@nasdaq/brixton-metals-drills-139m-of-435-gt-ag-096-gt
As for the vizsla,I bought back in this morning and sold before the close for a quick flip. Hoping to get back n lower again…..f not I will buy more Kootenay
Wolfster – well played on the Vizsla day trade. I considered doing the same thing, but went off on different tangents with a number of exploration plays. BTW I picked up a little Goldon yesterday, and will keep nibbling at it, so thanks for pointing out the merits a few times here on the KER.
Wolfster – Rick Rule has a small segment on Vizsla in this interview around the 19:26 minute mark.
_________________________________________
Trading Gold Stock Promotions Can Be Extraordinarily Profitable says Rick Rule
MiningStockEducation – July 14, 2020 #AudioInterview
Canuckski, I was a buyer today and now have more Brixton than before (1.165M shares).
Of course, it could easily go lower tomorrow and almost certainly will if silver falls even modestly. The daily indicators (stochastics, MACD, etc) do not look good right now…
https://stockcharts.com/h-sc/ui?s=BBB.V&p=D&yr=1&mn=1&dy=10&id=p21904384231&a=784157311
You are a crazy boy Matthew. I’m not sure why you are not on the BBB management team with that size of holding. 🙂 Thanks for letting me know you’re still committed on this one. If you’re comfortable with sharing, are you in this one whole hog for mid-to long term, or do you anticipate lightening up on this one once we start seeing the silver price peak in the shorter term? Thanks.
Unless it really surprises me to the upside in the short term, I probably won’t sell more than 10 to 15 percent.
I held too much at the top last summer but I will not be less aggressive now as a result since the outlook for the sector has objectively only improved and become clearer since then.
When it comes to these tiny cap specs, I trade only a portion of my positions using the methods that I use for all other larger, more liquid plays like the ETFs or large caps. I make things more complicated for the rest and have had bigger wins as well as bigger draw-downs as a result and am better off for the effort it takes.
I bought more KTN today, too, even though it is trading at twice my cost basis:
https://stockcharts.com/h-sc/ui?s=KTN.V&p=D&yr=0&mn=11&dy=0&id=p74130194663&a=725521128
Healthy move off of support today:
https://stockcharts.com/h-sc/ui?s=KTN.V&p=D&yr=1&mn=8&dy=0&id=p60795809883&a=684730971
OK, super Matthew. That insight is extremely enlightening. Thank you for sharing!
Yeah I bought more KTN in the .30’s ……I keep expecting it to eventually blow through .40… third times a charm
#2 How To Hedge Your Investment Portfolio – Peter Grosskopf, Sprott Inc.
Crux Investor – July 14, 2020 #VIDEO Interview
DITTO GLEN…………Spot on…….only thing scary will be the size of your billfold… 🙂
Good one OOTB! “only thing scary will be the size of your billfold…” 🙂
🙂
Happy Bastille Day! Vive la France! Vive Hong Kong libre! Are LPG and Moriarity shooting off fireworks in France?
Jerry your a gentlemen 🙂 add it to the list of things i have called you lol. But really I’m a middle of the pack type hitting slugger. Nothing more nothing less. We have some big time players in here including yourself that have a wealth of knowledge I hope to reach some day . As I have said to Matt on many occasions and I say here, I hope we all make a fortune and take the luxury of understanding what’s going on in this world and how it’s related to gold. If we have 3-5 years more in this bull well than make every coin count and if we have a longer duration than squeeze as much pulp as you can.
Cheers
Thank you Kind Sir……appreciate …… 🙂
Glen, ….we all learn from each other (or at least we should)…..those who are willing to take the experiences and hard work of others, and return the favor…….Thanks for noticing the talents of each player….and thanks for your contribution…..means a lot….
Well said Jerry! Thank you and your welcome
thanks.. 🙂
Hello,
Commodity markets are definitely out performing and I have had gains and moves in higher percentages then I have had in a long time. Nothing has changed in the wall of where he continues to outperform. Gold is headed to its next target 1820 and 1840. It will consolidate that area a little bit more and then move onto the bigger number 1840 to 1880. Or I expect a battle will ensue and consolidation will also happen. But make no mistake for myself short term and long term stocks are set in place and there has been no selling just waiting for percentages to go higher. I don’t expect anything significant of a large scale pull back or scary pull back until my target is met. That target lies between 1880 and 1923 as I’ve stated many times. Best luck to all.
Glen