I’ve been working since 5 am. I knew this would be a busy week and I wanted to make sure that I was ready for it. Most of my preparation for this week was done last week, when I bought gold stocks (NEM, ABX, RGLD), Silver (SLV) and Natural Gas (UNG).
The Dollar keeps imploding and virtually anything else with potential risk goes higher. So my logic is that if prices are moving up because the Dollar is going down, then why not own the pure plays that benefit most from a falling US Dollar.
Silver (SLV) pulled back into the 50-day and then exploded higher today.
Natural Gas (UNG) has been THE lagging Commodity. I have been watching it for months, waiting for a potential entry point. It looks like UNG is trying to put in a Double Bottom at $9. There is a big divergence between Price and Momentum (Green Line). UNG had a nice pop today.
Hecla Mining (HL) is a riskier Gold stock. It has been leading and broke out last week. I have tracked it for some time and got paid off huge today. Again, very 1999 tech-like.
Singapore (EWS) has been holding up like a champ, simply building new bases each time the markets pull back. Another nice move today.
Industrials have been in a multi-week base and finally started to break out today.
There were lots of breakouts and now I go to work looking for the next round of potential breakouts. Again, I want to only buy when I have an exit strategy. Look at what is again showing up –
Metals and Mining (XME). Does this remind you of the chart of XLI? It should.
Russia (RSX)
I refuse to chase price higher and buy when the markets are extended. I prefer to do more homework and find other setups that can be bought with reasonable risk.
If you have not participated in this leg, don’t get antsy and do something risky. Do you homework and look for the newly emerging potential setups.
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