Let’s step back to the weekly (intermediate) time frame, and look at EXK. As the fifth largest holding in SILJ, this looks attractive to me since it has well-oversold stochastics, along with having completed a 50% fibonacci retracement. This is as good a time as any to get long, for those looking to add or start a position, or one could buy SILJ, since many charts in the etf look similar.

Tax-loss selling in the junior miners has been brutal this year. Take a look at ASM (Avino Silver and Gold Mines), after breaking into significant new highs in late October, it’s gotten smashed 44% lower in just the last 8 weeks! This is one I bought today, along with CHPGF (Chesapeake Gold), and a few others. I will take them off the hands of those that can’t take anymore!

I will use the weekly chart of the SLV etf for a proxy on silver, with a quick horizontal trend line added, to show why I am adding to our Silver futures (March contract) position today if we get over the $30.09 level. That level if taken out on the upside, would suggest the move lower this week was a false breakdown. Thus far, Silver has managed to get up to $30.03, so we are getting very close. I will add 20% to the current position size.

There are so many miners with similar charts, I only use this one of symbol ANGPY since I was buying it today at $5.35 per share. Its the world’s largest platinum miner, and pays a dividend of 3.3%. Apparently its a favorite stock of Jim Grant from the Interest Rate Observer, I read recently. Like I said, there are many, many miners including the SILJ etf itself that are down 30% off recent highs just made in October, so I will continue adding to positions here since we are still up nicely overall. Having a good cushion of unrealized gains makes it easier to stay calm in corrections like this, so that we can buy or add to positions versus being scared out of positions, the opposite of what we want to do.

The Russell 2000 etf by symbol IWM is already down 10.8% from its all time highs made in late November, less than a month ago. We also see groups like biotechs, solar, and financials (KBE) making new correction lows. So the question is, how much downside will they see, and with crypto junk also crashing, will some of the money leaving these overbought areas find its way into gold, silver and the miners? Stay tuned!

We are currently pulling back in the metals and miners, just ahead of the best time of the year seasonally, for the group. Time to add into dips again, on oversold technicals on shorter time-frame charts like the weekly and daily setups. It looks like a monthly close over $39.50 or so might be enough to motivate the miners to make a massive bull run to the old highs in 2011.