Recap for August 3, 2021

Today was a very slow day, not much volume traded in most things, even the QQQ’s have traded only a little more than half their average daily volume today. I did manage to use the oversold intraday chart this morning to add to my HL (Hecla Mining) LEAP options, and my EQX LEAPS as well. Members should have received those trade alerts this morning, but I haven’t been filled on any other buy orders, including limit orders to buy in GDXJ, MUX, MGMLF, NOVRF (got close), and a few others. I will spare readers having to see the same charts over again, and instead post some things of interest being we have some down time with Canada’s stock markets closed for a civic holiday.

First, I suppose I will post a chart of MUX (McEwen Mining), since I get this question a lot, about “breakdowns” below supports or moving averages. If you recall a few days ago when we reviewed the MUX DAILY chart, I received several email pointing out how ugly the chart was as it had broken through and was holding below the 200 day MA. Well, those observations were true, but I mentioned how I always assume support and resistance will hold, even repair slight breaches, rather than continue through with the break. MUX is a great example, now that we have the benefit of hindsight to review. Notice how suddenly the chart looks great? It’s above the 200 day MA, and even looks like now it has held that support! Same stock, same chart, all that matters is who is assessing it. Supports and resistances are NOT lines in the sand and always so clear and obvious breakdowns and breakouts when crossed. Just like that, MUX looks like a fine buy candidate!

And for those that have asked why I am so heavy into the precious metals miners right now, I will post some words from others, at the risk of “talking my book”. I don’t start out so heavy, but I can get very, very invested in a group when I have taken initial positions and they start to work for me. I like to get into positions where I can add to a winner, have the big size on when the trade really starts to take flight. Yes, it’s paying up, but it isn’t chasing if we don’t buy into the up-movement. We can add to a winner as it rises, which makes me uncomfortable unless the move up has just started, or we can wait for the eventual pullbacks that occur after we are sitting on nice unrealized gains, which is my preferred situation. This strategy works best for those with the big picture analysis in mind, and trying to capture the long term trends.

Just a quick note, I tried to post some links here but the system won’t let me, yet. I will figure it out, and get it fixed, so you can see and use exactly the same things as me.

To prepare for tomorrow, I noticed some nice “prints”, ie. big buy orders come into some miners at the close, usually a sign somebody with deep pockets is acquiring more shares for a move higher. I have my list ready, and will review the stocks, possibly add a few others, and be ready to buy more in the morning, BUT only once they have gotten oversold on the intraday charts. Near the close, most technicals were in the middle ground, forcing me to sit tight an be patient for the next oversold signal to buy. We should get an opportunity to add tomorrow, but we can’t yet know when the market will push lower enough to get oversold, it could be around 10 am, or it might not happen until the afternoon. When it occurs, we will be ready to add!