Monday Aug. 30 Recap

After a big week last week, and very strong close on Friday, today was a day of digesting the gains with a very modest pullback. We took advantage by adding to a few positions after waiting for the technical indicators on the 30 min bar charts to come down to oversold levels. Late morning we were able to add to a couple positions, things that haven’t yet gotten away from us on the upside, since we hate to chase prices higher. We bought more SILJ LEAP options that expire in Jan. 2023, and some shares in junior explorer Outcrop Gold (OCGSF), which is a stock we made big gains in 2019-2020, now looking like it might have bottomed out with the sector. We don’t just trade the options on SILJ, as we have a large position in the shares alongside the the options we added to today, but while the ATR’s (average true ranges) of most miners right now is low in comparison to the last year or two, along with the implied volatility being subdued relatively speaking, it makes the options contracts more attractive for a buyer.

We also had several limit orders out there, hoping to add to some miners on the intraday pullback, including MXROF, AUMN, IRVRF, and NGD but were not filled. That’s OK, we will remain patient and try again at the next opportunity, now that the half hour bar charts (intraday) have made a “golden cross” to the upside, where the 50 bar moving average has crossed above the 200 bar MA. We are confident the turn is here for the sector, as the 200 bar MA is also now about to turn and start trending higher, so it’s very much time to be invested if one isn’t already!

A few charts to consider…