From Out Of Favor To In Favor

Over the last month the metals and the mining stocks have become somewhat of darlings based on their 30 day performance; $SLV +14.38%, $GDX 8.98%, $GLD 4.18%, this is coming right after public opinion hit multi year lows.

$GLD, $SLV, $GDX have been flagging, digesting their recent gains and a bunch of the mining stocks printed an inside day yesterday (A candlestick formation that occurs when the entire daily price range for a given security falls within the price range of the previous day).  

You never know what is going to happen after an inside day, the stock can go either way, but you have to assume that there is a high probability that it will move in the precedent direction.  The fact that so many mining names had an inside day tells me that chances are high that they will be in play today.  Very simply what I have done is set alerts on the stocks that printed an inside day, the alerts will trigger if the stock breaks yesterday’s high.  Some of the names below did not print an inside day, most did, but undeniably the patterns are very tight. (just in case some of you want to get technical).  And obviously if wanted to get involved, the easiest way is going with the ETF’S.

$GLD, $GDX, $NUGT $GDXJ, $SLV, $USLV, $EGO, $CDE, $GG, $PAAS, $NGD, $HMY, $AEM, $VGZ, $ABX, $GSS, $GOLD, $IAU, $RGLD, $RBY, $IAG, $GTU, $GORO, $SAND

ZorCapital

 


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.


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