Recap for July 29, 2021

We saw some follow-through today on yesterday’s strength in most of our positions, I think only KWEB weakened and closed lower on the day, after it opened strong (up 2-3%) before selling off. It’s been a good few days and I expect more upside over the next weeks, while we could retrace for a day or two at any time, I think the tide has turned and miners will outperform most groups heading into September. At least, that is what history suggests.

Today we saw the GC (August gold) futures contract get right up against resistance at the 200 and 50 day moving averages. It’s a tough call to guess what might happen the next two or three days, not much would surprise me, but I think looking out a few weeks we should be well on our way with higher prices for gold, silver, and their miners. About $1832-1833 is the area gold needs to clear before it can search for new resistance at higher levels. I will point out that many recently beaten down miners were up double-digit percentages today, even some stocks I have stopped out of have jumped over 10% a few days in a row! It’s ok, it’s part of the game and we need to focus on the next opportunity, knowing we also still own many positions that are running higher now with the sector.

Let me also point out that tomorrow is the last trading day of the month. It’s important, as longer term investors use monthly or quarterly charts to make their investment decisions, since these eliminate a lot of the “noise” in daily or hourly charts. We will get our final price data for July at tomorrow’s close. Silver cleared a level today, that if it holds, some long term bulls say the big bull market is still in force. I think that is in the $25.50 area, but as you know, I don’t treat support and resistance as lines in the sand, I treat them as general areas. In any case, silver made a nice push higher into the end of the month, more upside tomorrow would be even better!

I added to a winner in MUX, a loser in FVL.TO (which I don’t think will be sitting on unrealized losses much longer), and started a new position in Hecla Mining (HL) LEAPS. Members can see total position sizes, stop-out levels, average cost per position, and unrealized gains and losses in the tabs above. All this data is real and the statements are actual screenshots of daily account statements, not just a reporting by somebody that might or might not have experience or trade profitably. The truth is all that matters!

I’m only going to post two charts this afternoon, the first is the GC (gold) futures contract mentioned above, the second is my new position in HL (Hecla Mining). There are several reasons to own HL, but the most important to a precious metals bull like me at the moment is that the company’s free cash flow is exploding higher the last few earnings reports. I think HL might even have the fastest growing free cash flow from operations of any mining stock in the GDX or GDXJ (can’t recall which at the moment), making it one of the better miners to own in this cycle in my opinion. The charts would support my idea, as HL just made new 10 YEAR highs in June. In this world oppressive governments and local indigenous people protesting for more freebies from miners all the time, it’s nice to have a company whose operations are primarily in the US and Canada, it’s a perceived extra layer of protection for investors as the risk of nationalization is lessened (though not eliminated). Here is the WEEKLY chart of Hecla Mining (HL), and the DAILY chart of the August Gold futures contract…

Now, onto the gold chart…

If the gold futures can clear the double resistance at those moving averages, I think the price is heading significantly higher. I will also say I think gold will indeed clear that resistance, it’s only a matter of time, and I don’t think it will take long, in fact I bet it’s soon. I say this because Silver also put in a good performance today, as we near the month end the closing prices dictate what longer term investors will do with their positions. If Silver can hold up here or gain on the last trading day of the month, the long term charts will remain very bullish.

Members receive real-time trade alerts, as well as access to our stop levels, total position sizes, and unrealized gains and losses, the way it should be, when somebody is asking you to trust their claims. Why don’t more newsletter writers just show you their results? I don’t mean just tell you, or type it, the easiest and most honest thing to do is to post their actual account statements like we do here!