Tues. Sept. 7 Pre-market Update

Just a quick update after the long holiday, since I didn’t have much that needed to be said after last week’s nice close on Friday. However, I wanted to lay out today’s game plan before the open, so readers can know what I might buy and when.

Since the mining etfs closed in their middle to upper range in regards to intraday technicals on Friday, there won’t be any trade setups for the first hour, at least. This is welcome since it will allow us to watch out buy list to see which are holding up the best as the technicals pull back to oversold later in the the morning or even the afternoon.

A day or two pull back now will not alter our opinions on the sector at all, we will use it to buy more. Some names we might buy or add to are NGD, PGM.V, AUY, IRVRF, OCGSF, IAG and several others. I will post a couple charts below, but lets see which look best after the group gets sold lower on the market open.

I will mention that the bigger miner etfs like GDX, GDXJ, SIL, and SILJ all traded above their 50 day moving averages for most of the day on Friday, a very positive sign, but they did not hold above the MAs, and chose to pull back just below the line. We expect they will get over and stay over their 50 MA’s soon, even this week, so its something to keep our eyes on.

Here is PGM.V (PureGold Mining)…

And here is NGD (New Gold)…

Lastly, Outcrop Gold is a more speculative junior miner but reported great drill results this morning. When this one gets moving it can really run, so its just a waiting game at this point. We have shares, but are not yet up to a full-risk position size, so will continue to bid for shares below the market.