NFTRH Update 5.3.13, Notes

Precious Metals, Gold Stocks

The HUI continues its lame – and I do mean lame – attempt to rally. I have changed my tack this week from holding my favored miners when I think a rally is imminent to maybe holding a couple favored ones (currently only TGD and PVG are left, and that may change by day’s end) when I think there is at least a chance of a rally, to just biding this very frustrating time in cash and waiting for opportunities to alternatively trade the leveraged DUST and NUGT.

Why? Because current analysis calls for any rally to be merely a counter (bear) trend variety until something is proven technically. So I have come to the conclusion that DUST and NUGT allow me to just play the sector until such time as I wish to become an investor. It may be best not to have favored individual names tugging at the heart strings.

I realize a large part of the subscriber base may be thinking ‘no shit Captain Obvious, we know this sector is busted’, but I wanted to lay out my plan anyway. I’ll mostly trade in impersonal vehicles until I can get a grasp of the situation. To me, the lower HUI targets rule over any short term upside potential.

Gold & Silver

Nothing has changed for gold and silver. They are technically damaged and must prove a bull case by getting above 1524 and 26.10 or the bear is in charge. With gold, as you know I am willing to be very patient as a big picture bull, and this is measured in years. But the near term technicals are another matter.

Broad Market

Party on Garth. Nothing has changed here either other than ‘healthy correction’ (I am so naive sometimes, I know :-() seems to be leaving the equation, replaced by upside acceleration and blow off.  That would not end well.

I am not going to tell anyone how to play it. Just that an upside acceleration will likely be met with heartache for people who buy it to hold it. For my part I just keep looking for bull stocks that have corrected to go long on, and poking from the short side to ill effect. Another loss was taken today but I do plan to be in the game when the end comes. Call it my masochistic side.

Anyway, have a great weekend and see you on Sunday with an abbreviated edition of NFTRH.