It’s Gold Miner Hyper Spastic Week

Yesterday we looked at the end of day festivities in SVM. It took a rest today. But today the whole sector got a move on after we’ve been noting the positive divergence in larger institutional favorites like RGLD, FNV and some smaller ones I own that have maintained up trends.

Here is a chart showing the likes of KGC and GOLD participating in the ‘above the February highs’ sweepstakes and the others looking good. This is one of several multi-miner charts we use each week to technically review a growing list of stocks, large and small (currently 24 of them with more coming). As I sensed at least the potential for something to start brewing I started building these things.

gold miners

BTG went up the second most of all my holdings (not going to list them, but I try for quality and value). The one that went up most was yesterday’s NFTRH+ highlight (before breakout), GSV (post unlocked), which was +11% and went right to the daily pattern target of 1.90 to 2.00 (1.92) as noted in the update. It would be great – and completely unrealistic – if they all worked that way.

As for the runner up, BTG was +10.5% today and here is its hysterical smash through the moving averages. There seems to be something impulsive going on across the sector. I don’t worry about the gap left today because it happened on volume and could be a breakaway gap that eventually changes the trend. We’ll see on that.

btg

You don’t get rich day trading the market. Of course I would say that because I am not good at it (and don’t want to be). So allow me to rephrase… I don’t get rich day trading the market. I make a lot of money if I get right on a future trend and hold hold hold the majority of positions (with some trading around).

There is a lot of drama in the air with the GDXJ rebalance and FOMC upcoming, China jawboning Treasury bonds and lots of other noise. A lot of inputs are in the market. But as a really smart NFTRH subscriber has been noting, everybody he interacted with in the online financial community was bearish the miners; especially the ones he calls bearish bulls* who maybe today realized just how off sides they were. So the question is whether or not it’s a classic short cover or a launch?

No need to play swami. We’ll just do the work of evolving the story moving forward. Personally, I so badly want to change the trends and happily manage the buying (and profit taking) opportunities a new bull market phase would afford, but it’s all going to come out in the wash. It may go that way or it may all reverse into yet another heartbreak. I sense something is happening, but the weekly grunt work will keep us right, regardless.

* This is the most vulnerable of bears; not only does a day like this kill them because they are at heart, gold bulls (many being reformed fanatics), but now if the stocks keep going up the pressure is going to be immense to buy and get right with their most deeply held convictions.

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