Sunday, September 15, 2013

Calling Miners up from the Minor League

Just when we all start enjoying the move higher in the miners, we get a pretty hard selloff.  But I want to put it into perspective.  Nearly all of the miners I follow have recharged their relative strength on the daily, and are sporting a higher low and a higher high.  Everyone needs to remember this is not 2011 all over again. Oversold and overbought rules are going to apply.

When NUGT was trading in the single digits I traded it pretty aggressively, but when they split it 1 for 10, it was such a juicy target for the bears that I stayed away; and we had oil rising due to the fake war narrative we were being fed, so that also puts pressure on the space.

Now that news is behind us, the Fed in front of us, focus is back on liquidity, and on Friday I had across the board buy signals on my miners, smart money positioning.  I am long SLW, AG, and PPP, plus a GLD 135 Sept week 4 long position (closed the 145 sold leg on the down move)  Monday and Tuesday I will get to full positions on all three (I have been scaling in and out to work my average price down).  My if I am wrong sell stop will be Thursday's low, after the Fed news.

On other news, I see silver and gold moving higher, FAS, SPY, and oil moving lower after the announcement and am and will be positioned accordingly. In FAS puts, SCO shares, and moving up a conditional ever day on SPY for a put spread.

For those buying, selling, and in the mortgage business, I see rates have topped here for the foreseeable future.

Enjoy the charts.

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