Tuesday Aug. 31, 2021- Quiet Day

There wasn’t much action today, at least nothing set up or dropped to oversold technicals enough in our charts to warrant any action. We didn’t make any changes, just sat and waited patiently for setups to occur, and saw accounts creep higher in value again. It’s looking to me (Paul), like miners are just digesting the big gains made recently, and fueling up the tank for the next big day or two, which should be this week.

Outside of miners, we had KWEB, the China Internet etf jump 4% today, and now up 5.5% on the week, also looking to me like it wants to make a run higher. On the daily chart, notice the fibonacci retracement to the 50% level is close to the 200 day MA as well? When we see two popular indicators meet in the same area, it means many people are focusing on it, and makes it more likely to be achieved in the future. This means I expect KWEB to get up near $74 at least in this trade, maybe taking 5-9 more months to get there, but possibly much quicker. We will look to add to the KWEB etf when it gets oversold on an intraday basis, or even on a daily chart, though that isn’t likely to happen this week from the looks of the chart below.

Generally speaking, the miners were a decent group today as they managed to close higher by 1-2%, however some of the junior explorers were weaker and pulled back. I might add to some juniors during the rest of the week, but I don’t feel pressed to buy anything heavily or quickly. We can afford to wait now that the trend appears to have turned higher, and we already have large positions. I liked to see EQX (Equinox Gold) get its act together and be strong all day, closing at the highs, up over 5.5% on the day, so it was a standout worth mentioning and we might add at the next opportunity, being our position went into the green today (unrealized P+L when positive). Here is EQX, looking like it could easily make a drive straight to the 200 day MA around $8.60. Importantly, note the gap there created back in mid-June. That gives us another reason to think EQX getting up there is close to a sure bet, it could have much more in it, but I would at least expect we test the 200 MA.

In short, it’s not too late to get involved for what is shaping up to be a big run for the mining sector. If you don’t own them yet, days like we’ve had the last few don’t offer much better opportunities to join the party. Take advantage of the scared traders that can’t hold positions for more than a couple days, and scoop up the shares in which they are taking small profits, because this group can really get flying once momentum kicks in!