Miners Breaking Out

I started buying miners last week with GDXJ, and the juniors were threatening for a week.  Today, they are breaking out.  Gold up, oil down, miners beat up makes for a low risk trade.  MACD and Moving averages are now confirming.  I also have some AEM, bought earlier, but underwater on it so far.

IAG, EGO, GDXJ, AEM, and NG are in my portfolio.

EDZ- The perfect antidote for a stock market panic

Contrary to common belief, as the U.S. struggles, the world will be forced back into finding real dollars, and abandoning the emerging markets, why?  It all has to do with leverage. The dollars that circulate pale in comparison to that which is borrowed into existence to fund speculation.

We are now entering the third speculation rinse out in a decade, and this will cause a rush for real dollars.  EDZ is a prime beneficiaey of this move, and I easily can foresee a revisit to new highs.

I currently own some shares, and will add on this upcoming relief rally (dollar weakness), but options are nice for some additional leverage.  Right now the vol is too high to buy options, but I will sell strike 15 puts to pick up some share at a discount, and will buy Jan 12 calls OTM that will give me potential 5 to 1 return at my target price.

On a shorter time frame you can see a cup formed and now I suspect a handle before we really breakout.

This chart blows me away

Look at the massive divergence in the price of the miners to the gold/oil ratio.  Something has to give here.

SLV fib lines

I currently have a sell on Silver, but this fib line is holding for now.

AEM- Next Long Setup

Watching $63.20 area.  I also would not be surprised to see the gap filled first though.

GLD-Trading plan

XG - Textbook

This stock is a traders dream.  It behaves on the momentum oscilators (hourly).