Recap for August 2, 2021

Today was the first trading day of the new month, thus we have data for new monthly charts, which are the charts longer term traders use to make their investment decisions as they typically have less “noise”, aka false signals. Today was relatively uneventful, but I did make a few transactions and want to post a few charts of what I’m seeing. Members should have received 3 trade alerts today, sent to their email in real-time just after the trade is made.

On a very short term basis, some charts of miners are looking overbought on the daily time frame. That is not a problem or something we try to sidestep, as long as the time frame we originally used for the buy signal is still intact. At times we have to prepare for possible pullbacks, without fear so great that it forces us to sell and try waiting on the sidelines. If you watch new traders or ones that can never seem to learn, they will often react to every little wiggle or gyration, they try to get out before any dinky pullback they anticipate, but often lose focus of the bigger picture and potential, then lose their positions! We are in a confusing area for the very near term, as we have been in a down trend in miners for example, yet have now also had a rally out of the lows. This confuses traders, some think the bull is back and want to buy in, others think the trend is clearly lower now, and this bounce is a perfect contra-move to get short. Personally, the largest and longest trend is still long in miners and metals, so I am in the camp looking to get long this sector even more than I am already.

There wasn’t too much particularly noteworthy to report today, instead I am looking forward to tomorrow morning when the 30 minute bar charts reach oversold stochastics, so that I can add to positions. Today, I did add to both EQX (Equinox Gold) and HL (Hecla Mining). Members should check their trade alerts, as well as the Stops tab and Daily Account Screenshots tab above for all the specifics, including prices paid, total position sizes and unrealized gains and losses, all the most important details to a trader. Here is EQX…

We also added to HL (Hecla Mining) today on a couple occasions….

I could have been more active buying today, but I prefer to have the intraday charts (half-hour bar charts, for example) oversold before I buy, just as I wait for the signal on a daily, weekly or monthly chart. It’s just an additional edge, and the savings on good fills really add up over time. I intended to show readers some chart annotations I made on some monthly charts, but my charting service was screwy today and didn’t allow me to save the charts along with annotations. I will look into it, so that I can show readers some of the things I’m seeing longer term, some setups, trend lines and fibonacci levels we should keep an eye on as they get closer.

Trying to get my charting service working correctly, let me post this weekly chart of Silver with a simple trend line and see if it comes up correctly. Silver closed last month right on the trend line, or maybe even slightly below, but members will recall that I don’t view a trend line as a line in the sand, more an area that is likely to hold rather than not. To me, so far it looks like the Silver bull has held it’s ground and remains intact.