Still Long Miners, Added to SILJ, CDE, HL, EXK, FSM, and Physical Silver Holdings

Throughout last week, I was adding to many of the miners I have mentioned here in the most recent posts. I just wanted to mention the new buys, and also point out that we might be at another turning point (to head higher), once again. Friday saw good volume in the group, as well as the SLV and GLD etfs, and the miner etfs GDX, GDXJ, SILJ and SIL managed to work above some important moving averages, an important first step in changing the trend back into bull mode.

I will just post the SILJ chart to illustrate, it is now over its 10 day MA, its 50 day MA, and its 10 WEEK MA, not bad for a day’s work on Friday. Also, while I don’t make trading decisions based on the weekly COT reports, I do like when they line up in support of an anticipated trend change, which appears to be the case again this week as the professionals covered more shorts and added to long side positions, while retail and money managers again did the opposite, shorting metals while taking off some long positions. This action on both sides is typically a sign that prices of the metal are about to turn up. If we can get a new intermediate cycle started, we could have 6 months or so of general upside. It could consist of a screaming bull run, or just a modest move higher, but the trend should be up if we can work the miners just a little higher than where they closed trading for the week. For example, GDX closed at $24.34, but only needs to close above $24.59 next week to signal a new Intermediate cycle has begun.

And here is the WEEKLY chart of GDX, to show how close it is to starting a new intermediate cycle.