Erik Wetterling – Reviewing Recent News from 3 Exploration Stocks With The Hedgeless Horseman

Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins us to discuss his value investing strategy in junior resource stocks, and he reviews 3 exploration stocks that have put out recent news, that he feels represent intriguing risk-reward setups. We start off discussing how many investors get caught up in the daily noise, or chasing short-term pricing trends in the metals and then erroneously extrapolating them onto their longer-term value investing positions.


We then have Erik outline what he likes about the exploration upside and potential development growth as the respective projects get further derisked at Nevada King Gold (TSX.V: NKG) (OTCQX: NKGFF), Dolly Varden Silver (TSX.V: DV) (OTCQX: DOLLF),  and Eloro Resources (TSX.V: ELO) (OTCQX: ELRRF).


*In full disclosure, the companies mentioned by Erik in this interview, are positions held in his personal portfolio, and are also site sponsors of The Hedgeless Horseman website.   Dolly Varden Silver and Eloro Resources are also sponsors of the KE Report, and Shad has a position in Dolly Varden Silver.




Click here to visit Erik’s site – The Hedgeless Horseman

    Feb 03, 2023 03:10 AM

    Shawn Khunkhun, CEO & Director of Dolly Varden Silver Corp. (TSX-V: DV | OTC: DOLLF)

    Metals Investor Forum #MIF on January 27-28, 2023

      Feb 03, 2023 03:13 AM

      Shawn Khunkhun of Dolly Varden Silver talks to Peter Krauth

      Metals Investor Forum #MIF on January 27-28, 2023

      “Shawn Khunkhun, CEO & Director of Dolly Varden Silver Corp. (TSX-V: DV | OTC: DOLLF) and Peter Krauth of Silver Stock Investor discuss the Canada-based mineral exploration company, which is focused on advancing its Kitsault Valley Project, which combines the Dolly Varden Project and the Homestake Ridge Project, which is located in the Golden Triangle of British Columbia, Canada, 25 approximately kilometers by road to tide water.”

    Feb 03, 2023 03:46 AM

    FREAKY FRIDAY……………again…………………. (not investment advice)….

      Feb 03, 2023 03:13 AM

      GOLD PUKES…………… Freaky Friday….. like I said……………. 🙂

      Feb 03, 2023 03:01 AM

      Jerry, you have mastered the gold market “Through Conscious Auto-Suggestion”. DT

        Feb 03, 2023 03:13 AM

        I have mastered a lot…………….. I have a lot of gold…………. lol……….. 🙂

        Feb 03, 2023 03:41 AM

        People should pick up a book ….on “Through Conscious Auto-Suggestion”.
        Peals to the “think and grow rich”

    Feb 03, 2023 03:41 AM

    i posted this a few weeks ago….My /GC short was missed by 3 points…The dollar did a bit too much rally prior to the target at 1978 and hit 1975.5…wkly april…the buy back likely at 1834 a .382 retracement…glta

    Feb 03, 2023 03:38 AM

    EXK hit my downside target of $3.20.

    Yesterday’s ginormous reversal in silver basically predicted something like this today.

    I think EXK is worth a nibble here, but I’ll admit with silver back below the 100 WMA, the near and medium term risk has risen substantially. Most of the rest of this year could have silver playing around with its 200 dma and going nowhere at best. It has to regain the 100 WMA.

    Feb 03, 2023 03:41 AM

    If silver does in fact remain under its 100 WMA for most of the rest of this year, it’s pretty clear that SIL:SLV and the massive underperformance of silver miners generally (with a few obvious exceptions) strongly suggested something like that would occur. hindsight is 20/20 of course.

      Feb 03, 2023 03:26 AM

      I see no reason at this time to worry about silver remaining under the 100 WMA for the rest of the year.
      SIL:SLV looks better than fine and hit a 7 month high this week. It’s now correcting a 22 percent move in 6-7 weeks.

        Feb 03, 2023 03:47 AM

        I don’t think SLV will remain under its 100 WMA the rest of the year.

        Rather, the earliest it will cross the 200 WMA looks like about July. So any major upleg would come after that–so any time in the second half of 2023.

        Let’s face it, something in a sustainable bull trend does not violate so much support with such ease.

        I’ve never seen anything that was in a true megabull ever correct like this (more so with silver). The 50 DMA has been destroyed. Barring a miracle reversal next week, which, lets be real, we know is not coming, the near term picture is very bearish.

          Feb 03, 2023 03:20 AM

          I think it’s way too early in this mega bull to be sizing it up the way you are. It really hasn’t even begun yet in some respects.
          If the picture is so bearish don’t you think it’s odd that SILJ is up 1.44% vs SLV (at the moment) instead of providing downside leverage to SLV’s whopping 4.7% drop?

            Feb 03, 2023 03:49 AM

            1 day does not a trend make, and nothing goes up or down in a straight line.

            As long as silver remains under the 100 WMA, the 400 WMA is in play as a potential downside target. That would take us all the way back to $19.

            If silver does eventually get back down to $19, I think it will be stuck between the declining 100 WMA and the flat 400 WMA until we get that 100-200 WMA cross. which won’t happen until the second half of the year. At that point, silver should be primed for a blow off.

            With respect to SILJ’s outperformace vs silver today, today’s candle in that ratio, while positive, is shaping up to be an ugly reversal candle by the close, so I would expect the ratio to drop next monday. It’s also still still riding the downward sloping 200 DMA which it has basically been doing for 1.5 years. The weekly candle actually looks even more ominous and is a classic ugly reversal candle. I’m willing to bet a nickel the weekly chart makes a lower low next week.

            The fact that the ratio made a lower low in December despite silver being $7 off its low is looking more like a warning sign than anything.

            Feb 03, 2023 03:13 AM

            My assessment has nothing to do with 1 day making a trend. It is in fact the herd/majority that makes trends out of one day — like today. They do it when they’re scared, they do it when they’re confident.

            Feb 03, 2023 03:18 AM

            I am not asking for much. just hold onto key shorter term moving averages like the 20, 30 and 50 dma, which are typically springboards in a real bull trend. That scenario went out the window today. If it turns out I am wrong, so be it, I won’t post here any more.

            The dream set up was there (notwithstanding silver’s declining 100 WMA) and today killed that set up for the next 8-10 months in all likelihood.

            Feb 03, 2023 03:30 PM

            Those DMAs held for months so a shakeout was due. The strongest trends get their strength from periodic shakeouts of different degrees. Markets have a fractal structure just like everything else in the universe.
            Silver has not yet touched even its 20 WMA let alone its 30 or 50. Notice that the 20 WMA just crossed above the 50 (by a penny) for the first time since mid 2020. Those two MAs could very easily mark the low on Monday.

    Feb 03, 2023 03:44 AM

    HL is probably one of the lower risk buys technically speaking. It should have absolutely massive support at $5.50 if it even gets there.

    Feb 03, 2023 03:04 AM

    Does anyone actually see this switching on a dime?

    the last two days of action have been devastating to the near term picture.

    SLV:$XJY has completely fallen out of bed. Today’s candle is most unfortunate. Nothing easy in this sector, ever.

      Feb 03, 2023 03:24 AM

      Green, I’m sure Matthew actually sees this turning on a dime.

        Feb 03, 2023 03:34 AM

        at the beginning of this rally I had reservations since silver’s 100 WMA was declining and still far away from the 200 WMA. But I have to admit I got caught up in the price action, and it truly was near term bullish–up until today’s devastation.

        I did say once the 100 WMA turns down, it almost always wont stop until it crosses back below the 200 WMA or at least gets very close to it. Well, best case, that won’t happen in silver until the later half of this year, which is why I thought 2023 would be mostly sideways action. and that second half 2023 would be a lower risk time to buy. But whatever, the price action since the lows had me reconsider that scenario, and maybe I succumbed to just a bit of delusion. Silver could be right back into the teens soon.

        Feb 03, 2023 03:12 AM

        I think it’s funny that you’d be surprised if it did turn on a dime. SLV:XJY has been falling for 7 weeks and has now gapped down as it plunged below its lower Bollinger Band. That’s stuff of ending action and traps as it gets your type to panic and capitulate. Think of a mini inverted blow-off if you can.
        Despite the new weekly MACD bearish signal the turn will probably come very soon. Both SLV and XJY individually will likely give monthly MACD buy signals this month and if they do you can bet that SLV will be the one that outperforms.
        The downside for SLV:XJY could easily be just 2-3 percent from here…

          Feb 03, 2023 03:13 AM

          SLV:$xjy is in the process of painting a H&S top on the daily chart (what’s new?). It is indeed approaching the neckline, so a bounce to paint the right shoulder could be in the works. But that bounce could be generated by silver simply falling less than yen in the next few weeks.

            Feb 03, 2023 03:31 AM

            It’s not a good idea to anticipate the completion of possible patterns. People do it all the time which might be the reason Doc thought HL was going to something like 2 dollars or less.

    Feb 03, 2023 03:29 AM

    Expect a whole lot of nothing, but any additional devastation with gold should end with the infamous 1800 +/- level.
    Let’s see if sector equities finally overperform the metals, rather than providing yet another buying opportunity.

    Feb 03, 2023 03:33 AM

    MUMBAI, Feb 1 (Reuters) – India raised total taxes on silver imports 15% and on silver dore to 14.35%, the government said in a statement on Wednesday, in an effort to align the duty structure of the metal with gold.

    sorry if, someone else mentioned this….

    Feb 03, 2023 03:48 AM

    Weekly March /NG…The next lower price target just hit…This is nNOT a routine technical retest…something else is going on…Never the less…Buy the first intr-day pullback from the breakout bar…I think the counter-trend rally will be FAST and Furious!…glta

    Feb 03, 2023 03:06 AM

    day march /NG…allows for a spike to 1.82!…lmao…I have no idea…Could it go negative like oil?…just oversupply in north america?

      Feb 03, 2023 03:17 AM

      Eric Nuttell said it will go to under a buck, I cashed up 40% on my wife’s pension which was 100% resources. IMHO he is right, a swing so high can easily be countered by a ridiculous swing down, here in Alberta we remember our WCS oil going to negative $30. Producers were screwed for a while, that’s why we have more storage now.

        Feb 03, 2023 03:28 PM

        Eric Nuttel also was sure Oil was going up over $140 last year, so take it all with a grain of salt.

    Feb 03, 2023 03:11 AM

    The price of precious metal drops the algo’s sell if it goes up, they buy, it’s all short-term noise. All very predictable and it’s based on government statistics. Take it for what is, the physicians in The BLS are using their fact sheet to influence the markets, and calm the patient, when the price of gold goes up the patient is sick lower the price and you can pretend, we are in recovery. DT😉

    Feb 07, 2023 07:26 AM

    Eloro? Avoid anything Q. Hennigh is involved in.