Miners Following Through on Upside

This is a quick Monday morning update since I have several things to mention. First, the precious metals miners are continuing their rebound out of oversold technicals. We remain heavily long for now, and the absolute earliest we might decide to trim some holdings would be when the sector reaches overbought on the WEEKLY technicals, which is at least a week or two away from now. Even then, if we do any selling at all, we will limit it to 20-30% of holdings, and stick to our plan, keeping 70-80% for the much longer term MONTHLY signal, which is still many months away from any sell signal. So far, so good with this sector, as more names each day pop back above their 200 and 50 day moving averages, suggesting the uptrend is back in place. This filter on the Finviz website shows 11 miners are now back above both moving averages, whereas two weeks ago it was zero! The same filter with silver miners shows they are just getting going, with only one miner on the list (MAG Silver).

The above is not surprising to see, considering gold futures are now back over their 200 day MA as well…

If one does not yet own gold and silver miners, or at least the metals themselves, it is time to get heavily long. Actually, the best time to do substantial buying was several weeks ago, but for those that like confirmation and realize the commodities bull is nowhere near finished, buying what they can comfortably hold through pullbacks seems like a very wise move right now. We have seen many associates in the trading world get knocked out of their miners this year, but it isn’t often we hear a legend like Pierre Lassonde speak so strongly on the opportunity just in front of us, suggesting we “buy miners until it hurts!”. He also says we are witnessing a perfect 50 year storm in favor of gold, in this interesting podcast over at KingWorldNews. I highly recommend people spend the 12 minutes to hear what he is seeing, in his own words.

I am seeing more and more stocks regain their strength, and just head of earnings reporting season, like EQX for just one example pushing back above its 200 day MA…

In other areas of the markets, we mentioned last time a possible buy signal in the marijuana stocks, specifically the MJ etf. We have not yet bought, but we might initiate a position here soon. We are also on the lookout for a potential buy signal in the EWZ (Brazil) etf in the next few weeks, but for now our major focus remains on the miners as they are signals already in play. Here is a chart of the EWZ, so you can put it on your watch list for a possible buy opportunity…