In my prior post I addressed the Uranium stocks and the URNM etf. I now see that UROY (Uranium Royalty Corp) is up 7% on the day, and NOVRF (Nova Royalty Corp), the copper and nickel royalty has turned positive, now up 2% on the day after being heavily red this morning. NOVRF has been in a strong downtrend after a phenomenal debut and run when the stock came public. I often look for reversal days like today to show some interest coming into the stock, a potential floor and turning point, which would be an ideal place to add to my position if that turns out to be the case. Until now I have only had a small starter position to keep me focused on the upcoming opportunity, which appears might now be close at hand. Lets look at the chart of NOVRF, we already talked about UROY in recent posts.

Note the reversal on today´s candle, from weak to strong all in a few hours. Also see the MACD about to turn positive, as the RSI is just coming out of oversold. I prefer the COPX etf(copper miners) looked more similar to NOVRF, which would lend even more credibility to this setup, but NOVRF being a relatively new issue is excused from some scrutiny as it can march to its own tune for awhile until it gets more seasoned. In this case, its own oversold technicals in stochastics and RSI, combined with the strong reversal candle, are enough to step into more shares of this copper royalty play. Bonus, NOVRF is also oversold on the weekly stochastics.

Verify my buys and sells, prices, position sizes etc in the link on the side. There you will also find total position sizes, not just the recent size of buys or sells, and unrealized gains and losses and totals invested.

I still need to be patient for a few days at least, but the uranium stocks vs the URNM etf are coming down nicely to an area I’d like to start buying some new ones, and possibly adding to my UROY (Uranium Royalty Corporation). I’m willing to buy URNM, and CCJ (Cameco), DNN (Dennison Mines), URG (UR Energy), and possibly a few juniors as well. The stochastics on the daily chart I posted are not quite oversold yet, but getting there. I prefer to see the stocks “wash out” in a one or two day drop, in order to get some good fill prices.

I already was long CCJ LEAP calls for a nice profit that we realized, so am looking to get back on the bull again with that one and a few others, now that its a confirmed longer term bullish uptrend.

On a further decline, I stepped in and added more LEAP call options on the SILJ Silver Junior Miners eff. I like adding to winning positions when they pull back, I already have a lot of SILJ, so check the link on side bar for total holdings and average buy prices. The LEAPS I chose are the $15 strike price that expire in Jan 2023, so lots of time left on these. I will explain my position sizing methods in future posts, but I am always aware of my total risk (TR). Here is the chart, not much change from yesterday, but you will notice SILJ opened and went lower, before turning nd rallying to slightly positive on the day, now backing off a bit again. With the stochastics getting oversold on the weekly, I am expecting a turn higher soon, who knows, maybe today will mark the turn if the miners can build on this strength and close higher today?

Also, I note Uraniums stocks are weak again today. I’ve mentioned I’m on the hunt for a few uranium miners into a pullback, they still have a little more to drop into my buy zone, but there are getting closer. I will put the URNM (Uranium stock etf) chart in its own post next.

Here is the daily chart on the Silver Junior Miner etf SILJ.

As always, check the side bar for account positions, sizes, and buy prices. Today I added to the SILJ LEAP calls, thinking this could be a false breakdown on the daily chart, being the etf is well oversold on the weekly charts now.

I posted the daily chart a few days ago, but here is the weekly chart of Equinox Gold (EQX). Note the stochastics getting oversold, it should only be another week or two before a rally starts, though keep in mind this one is news driven at the moment. I’m not worried, I think the superb fundamentals will outweigh the short term negative news of a blockade of one of their Mexican mines. I added to the my LEAP call options that expire in Jan 2023, with a strike price of $7.50.

Going through my charts this weekend, I noticed that the KWEB etf is shaping up nicely on various time frames now. Even better, its the longer time frames that are showing the best opportunity. I am drawn to this because its the long term plays that often give us an opportunity to add to winners and really press for larger gains. At times we get lucky and can stay in something over a year, dropping our taxes to the long term capital gains rate, far less than regular income tax, however we should never make a trading decision to stay in something on that alone. Its just a bonus when it happens!

So let’s re-visit KWEB, but this time use the weekly and monthly charts. Suffice to say, this is one I will look to add to my position, and as always, I will let subscribers know each step as i take it. First, the weekly chart.

Nice chart, just wait until that MACD crosses higher, we could be off to the races, though we must have patience and let it do its thing until then. The gains can come quick once they start, lets be content to know we could be in the driver’s seat on this one. Now, let’s check the monthly chart.

On the monthly, we see the stochastics already well oversold, and possibly getting ready to cross higher and out of the oversold zone. These setups are never guaranteed, just like anything in trading, but our job is to take the trades as they present, with limited, fixed total risk. I have a starter position in KWEB LEAPS that expire in Jan 2023 (70 strike price), that could pay out multiples of my purchase price (check my accounts in the side bar), so this is something I will certainly be looking to add to in the future. I prefer to add into pullbacks, but will even add into strength if the pullbacks dont occur, just with less size. Keep in mind I will keep my overall total risk fixed, so the more I add, the less room I can give it on pullbacks. This is why I prefer to see it make some more gains before I get very aggressive.

While I’m already loaded up in precious metals miners, I decided to take a stake in one that is being driven lower on news of a blockade on one of their Mexican properties. It could be risky, but Equinox Gold (EQX) has several excellent properties and was one of the best performing miners in the recent bull, until the news of these illegal blockades by the indigenous tribes took hold. Its always tough to gauge the overall effect of such events, it could blow over relatively quick, in which case this decline turned out to be a gift, or if it blows up into something more serious, I will just have to stop out with my fixed, pre-defined risk. Because I expect this stock to be more news driven in the short term, I’m playing it through LEAP call options that don’t expire until Jan 2023 (7.5 strike price), rather than tying up too much capital in a more speculative idea.

Let’s take quick look at EQX, it sure looks ugly! But with fixed risk we can afford to try and capture what could be spectacular upside if anything other than the worst possible outcome occurs. As always, check the link on the side to see actual purchase dates and prices.

There are some other ideas approaching zones of action where I plan to buy, like some fertilizer stocks. Below I will show you Mosaic (MOS), but there are several others in the same group that might trigger a buy as well. I will let readers know when I buy, and what I buy, when I make my move. Agriculture stocks have had a nice run along with the whole commodity complex, and now many are pulling back, just what we are looking to buy into. There is almost always an opportunity setting up, if we keep our eyes open, and a level head. Here is MOS, I would love to pick it up down by its 200 day MA, but that might be wishful thinking, so lets keep it mind and see if sets up sooner for a good buy.

To get back into the habit of posting my transactions, I am updating my current holdings. Most readers know I have been focused on precious metals and their miners for the great macro-economic backdrop they have, with all the money-printing going on the last several years. However, I am always active and willing to take any trade signal in just about any group that presents one. Today I want to show a few charts of other holdings I have outside of the mining sector.

Let’s start with the big Chinese internet companies, like Baidu, Alibaba, Tencent, etc. These are basically the Google, Amazon, and Whatsapp of China, the biggest and the best in Asia, well-represented in the KWEB etf. From the chart below, you will see it’s already had a huge correction, something I want to buy as long as the fundamentals are still positive. Short term concerns of government crackdowns and controls aside, the fundamentals for these companies remain quite strong, so the question is when to buy?

About the only thing I don’t like on this chart is the breakdown below the 200 day moving average, and the “death cross” where the 50 day MA has crossed below the 200 MA, considered a negative sign. In trading, we rarely get everything to line up perfectly, and the fact KWEB has pulled back a substantial 33% is enough for me to go ahead and take a trade with limited size and total risk, as always. This is a daily chart, but as the trade is just starting to work out, in future posts I will cover longer term charts (monthly bars) and the potential hold time I expect for this position. For now, I’ve only purchased LEAP call options on this one to limit my total risk, and as its just starting to head higher, I will look for areas to add to the position as I don’t expect to close this position for at least several months if it continues to work in my favor.

Now, let’s take a look at another newer holding, Uranium Royalty Corp., symbol UROY. The stock and its group of uranium miners has been on fire this year, and like KWEB above, has had a nice correction of around 35% off the all time high just reached in early May. I have taken a larger position in UROY already, since the stock is in a firm uptrend, the 50 MA is above the 200 MA, and the stock is still above the 200 MA, all signs of strength. Also note the MACD is about to cross higher on the daily chart, and while I have not shown the weekly chart here, the stochastics are well oversold and also about to cross higher. I really like this simple setup, all one has to do is size their position correctly and let the stock go where it wants. As this trade starts to work i my favor, I am prepared to buy heavier while keeping my overall risk on the position fixed. This can only be done by having the stock rise and showing me a cushion of unrealized gains, in short it often pays to push winners for what they are worth. Of course, there are fundamental factors I consider in any trade, but I will save those discussions for future posts.

There are many others I have to post, and other reasons for owning these positions besides just the chart setups, but I cover those in future posts, as my intention is to be more active here and report my trading decisions consistently. Its better for readers, but most importantly, its better for my trading. It keeps me accountable, and forces me to review my positions, reasons for owning them, stop levels to limit risk, etc. If a trade is truly justifiable, it should be easy to explain.

I will cover my mining stocks in future posts, and provide updates on some of the trades I have been in for awhile now, usually these will be winners where I am pressing for more gains. I will also cover some precious metals miners I am down on at the moment, including some that are close to my stop out point where I will cut losses if they hit that price. The key is to have our winners much larger than our losers, because we will all have losers at some point in our trading careers. We limit our risk, while opening up our upside, trying to keep it as simple as possible to follow. Please check the link to my current positions, including unrealized profits and losses, something most letter writers are not comfortable reporting, because most don’t make money from trading. It’s just a fact, if they truly made money, and are asking you for your money to get trade ideas, ethically they should provide you with copies of their account statements!

Where can I start? So much has happened since the March 2020 Covid lies changed the world forever, and not anybody can show me how it did so in any good ways! Moving on, it’s been awhile since I posted, I’ve just been focused on other things, and this site was only intended to be a side project to show people how one guy makes his living trading the financial markets. I have so many topics to cover that it can’t be done in one long post, we will talk about them over time if you will allow me to catch up?

First, let’s touch on the markets. Of course, the S&P and Nasdaq continue to make all time highs, same as far as anybody can remember. It’s beyond ridiculous at this point! What prompted me to make a post today was yesterday’s FOMC meeting, in which the dinks at the Fed surprised the world, saying they will have to raise rates sooner than expected. This is comical for many reasons, first is that just the last few weeks they have tried to re-assure the markets that the exploding inflation we see all around us is only “transitory”. That might prove to be the case eventually, but at this stage nobody can know, furthermore, its directly contradicts the FOMC’s statements today where they feel a need to raise raise and slow the economy (and inflation). Which is it, boys and girls?

So, the markets being as dumb as always, took the Fed at their word and decidied to bash anything commodity related, you know, because while anything tangible is going through the floor towards zero, somehow the stock market and all the companies that deal in commodities including darling Amazon will continue to make gobs of money no matter what. It make no sense whatsoever, stocks and commodities should at least trade together on news like this, but markets are so manipulated now that the S&P could double by December while copper goes to zero, and nobody would think twice. it’s gotten that ridiculous!

Another event I haven’t touched on yet is the WallStreetSilver crowd over on Reddit. These guys and girls are depleting the physical silver inventory faster than anything I have ever seen before, yet silver can’t break above $28? In fact, its still about 50% below its 1980 high, while every other commodity I know of is multiples higher than their 1980 price. Keep an eye on WallStreetSilver (WSS), they are going to so some serious damage to those central planners that think they can micromanage every little tick. I first stumbled on the forum when there were on 20K subs, now 3-4 months later it just passed 116K! Go take a look at some of the “stacking” these guys are doing, they are certainly dedicated!

So the yesterday the FOMC said they MIGHT raise rates sooner than expected, and even though everybody should know by now they are full of shit and change their minds at any moment to suit them, they convinced the markets to sell, sell, and sell some more, but not just any markets, only the commodity markets, as the Nasdaq worked to new highs again. I’m not sure how much longer the world will take this blatant manipulation, but my bet is it wont be long, hence groups like WSS springing up and growing like gangbusters.

That leaves me with my positions and prognostications. For the record, I am still heavily long and on margin, though not maxed out. I did manage to sell my big-cap miners via etf GDX and its LEAP options a couple weeks ago, but that only amounted to about 12% of my holdings, keeping me too invested for the beatdown I was delivered the last two days. Do I think they can push miners and metals lower, they could. Do I also think this is just more hanky panky that could reverse soon, it could. So I am happy to report that I haven’t been forced into selling anything, nor will I elect to sell anything into such pervasive weakness. Instead I will wait for signs of stabilizing, and then look to add to positions while they are cheaper. This is being painted as a risky maneuver now, being the FOMC worked their darnedest to convince us all that they are going to tighten, for REAL this time! LOL!!! Do people so easily forget we just went through this a couple years ago, the Fed tried tightening, even managed it a few times, before they turned tail and ran, lowering rates in a desperate move they thought was justified by a surprise we all saw coming ahead of time. Here we are again, only this time with much more debt and the same problems, and it should be minus some credibility, but I suppose people without finance degree will always be intimidated for no reason at all by those who do.

I am heavily long silver and gold miners, as well as a little uranium and copper stocks, and will remain buckled up for a further test of my fortitude. Its gets easier with every lie they tell us, I know how it ends, I just don’t know when or how far they can hurt us before we are proven correct again. Lest anybody think I am whining for my losses, check again, I still maintain decent unrealized profits despite a two day thrashing which has cut them back substantially. I’m not worried, I am looking for the next best time to add to my winners, and the time is near.

I have mahy charts to review with you once we get into specific positions in the following posts. I just wanted to get back in the flow and make a brief update. There is no shortage of material these days, thats for sure!

Mining stock traders more than any others refer to the term “10 Bagger”. Its just a reference to how many multiples of their investment were gained on the trade. We currently hold two junior miners in our portfolio that are well on their way to being 10 baggers, one (MGMLF) is already up 300% since our purchase earlier this year, the other (MXROF) is up 160% so far. As always, verify for yourself our holdings, entry and exit prices, etc in our account statements posted elsewhere on the site. Its not just the absolute gains they have already made, its the fact they have done this in the middle of a correction, where many junior miners have pulled back 50% off their July highs. This is extremely bullish action, and bodes very well for when the group turns higher and resumes it’s bull again.

Let’s take a look at MGMLF…

That vertical run was only the result of Agnico Eagle taking a larger stake in Maple Gold, and getting deeper into a serious partnership, where AEM (Agnico) has not only agreed to invest in drilling and exploration at Maple’s discretion, but also contributed some properties to the joint effort, giving Maple the rights to explore AEM’s property, and they can share in the discoveries that will be made there.

Whatever the catalyst to get a stock moving like this, while necessary, the real key to netting a 10 bagger is to STAY IN THE WINNERS! We can’t cash out after every decent run, or we will leave lots of money table, especially over the course of one’s career where they might have several potentially life changing trades, if only they knew ahead of time and could stay in the trade.

So how do I know when to cash out, its easy to just say stay in forever, but riding a winner back down to zero won’t make you rich, either. I will use my regular exit strategies, and will sell MGMLF not only after the stock makes a big run, but also when it runs higher with the group. These two miners have been going higher in the face of a correction where many similar names have dropped 50% after a big run this year. This tells me they want to fly further, given a good backdrop where the miners have positive attention form investors. So, I will sell when not only these miners get to overbought, but the group is overbought at well. Will MGMLF be a 10 bagger, only 5 bagger, or it could even be a 20 bagger, we will let the market decide, but for sure getting out after “just” a 300% gain would be a mistake. To change our financial futures in a major way, we must press winning positions and stay in for our full signal, resisting temptations to cash out and take the quick money that seems big right now, but might be multiples of that not to far in the future. This allows the power of compounding to kick in and work in our favor, but that will be a discussion for another day.

Before we wrap up, lets take a quick peek at MXROF, too.

This one might even be up closer to 200%, I haven’t checked the exact prices but it doesn’t matter, the principle is the same, we must push our winner positions. Both of these holdings have tempted me to cash out several times already, but each time I was happier a short while later that I held on. The bigger the unrealized gains, the stronger your hand, making it easier to ride through corrections and press for even more. It’s hard enough to find big winners, but the magic in growing our investment accounts stems from letting winners give you all that they have to offer. You will often be surprised just how correct you can be!