GOLD & SILVER

Lets discuss GOLD& SILVER briefly.

I want to be clear about something here and that is that when I started this site, I wanted to help people be able to make money in the markets. Some are very conservative and do not want to see their account go red often, and I dont want that for them either.   Others are faster , more experienced traders and they want to make quick %-Gains,  I want that for them too.     THAT IS MY DILEMMA.   Safe for some, aggressive for others.   SO It has been my opinion that when the variety of people read my reports,  the aggressive get aggressive, the conservative remain that way,  but I have learned that this isnt always true,  so I want to be very clear in this update.

THAT HAVING BEEN SAID…

 I do believe that we have likely seen the DCL (Daily Cycle low) and that entering positions on Miners or however you play the trade can be profitable at this point.   HOWEVER,  Not everyone should jump the gun, so to speak, and jump into GOLD & SILVER  ahead of the FED WEDNESDAY.    It looks pretty good today and is acting correctly, so Why not?   Well, I like what I see, but the Fed Meeting seems to always  shake things up a lot.

SO I am going to show you what I see and YOU must decide what kind of trader you are.

1. I already showed positive action/ break outs  in some stocks like SIL & EXK with these charts .  They now have follow through.

2. I showed concerns with the major stocks breaking upward and selling off.  See 2 charts below

Today those stocks recovered and are looking fine. This goes for GDX & GDXJ too

I liked the volume in GDX  from the 1st hour onward.  I had entered NUGT  (AS A TRADER) yesterday, and held on until now.  Now with another day added to the mix, I still like what I see and I expect GOLD/ SILVER  & MINERS to make a run.

Since it was still a little unclear yesterday when many Miners pulled back into the close,  we really didnt lose a day, its like today is our follow through day. You’ll see many miners still at lows  (not extended) and I am expecting them to make a run ,  but maybe they are waiting for the FED DAY?

SA for example:  Breaking out today,  so you didnt miss a thing  yet.  

EGO_ many look like this.  They havent “taken off’ with out us.  They are building bases.

So my thinking is that –

1. SOME MIGHT NEED TO BE MORE CONSERVATIVE  and wait until after the WED FED MTG for clarity.  These arent running away with out us at this point.  We arent missing a huge move here yet.  Some are running higher,  others are still basing.

2. OTHERS MIGHT WANT SOME SKIN IN THE GAME  in case the FED MTG  pops these higher?  Gaps them out of their bases and then they run?

As a Trader, I take my low risk position and watch it.  If I get stopped out , even at a small loss,  I dont care.  A run is coming and I will catch the majority of that.   SO I took position yesterday and it is off the low where I got in. WILL the FED slam it down Wed?  Maybe.  I know who I am as a trader….I know what I can handle emotionally if ,  say my position was a buy at $11.25 , it now runs to $13,  and the fed sells it down to $10.50 in 2 days.    NO BIG DEAL.   To some that I have heard from here however?  That would put them on the sidelines and they wouldnt trust entering a position for a while. A bit gun shy.   VERY understandable, but I have seen this 100 times.

SO FOR YOU-  I think we may have seen the DCL.   We shouldnt break recent lows.

Knowing that, you can buy some positions in your favorite miners if you want , and understand how you will feel if this gaps down Thursday to shake you out.  Remember this GDX chart I pointed out?   WHAT IF the FED says something that will slam us down for 3 straight days  like early December?  Will you be ok in a position that gets stopped out?   or should you wait until Thursday to enter, after the shaking ?

You could see this WED FED DAY,  another up day .   Then we could just rocket higher & higher & higher with short covering.    OR – Selling THURS & FRIDAY down to that trendline.    Could you handle that  either way?  

So  Picture both scenarios and enter trades accordingly , Just be prepared for your own style of investing.  Partial position just to have some skin in the game in case it takes off ?   Nothing until you know, in case we sell off?

Ready?  Set?    Go!

ALEX

Sorry this was so lengthy,  but I get emails at times that help me to see that some need to understand all the pro’s and Cons facing them.   Just because I say you can start buying, doesnt mean you will not have draw-down,  does not mean the risk of a FED SELL OFF is off the table.  Proceed accordingly .  Thanks  : )