I had intended to post some updated charts and commentary on my favorite mining stock trades that were posted last week but won’t be able to get those out tonight. I have, however, just finished going through most of the charts and plan to do a video overview of those trades as well as the gold and silver sectors which should be posted tomorrow morning. As mentioned earlier today, all of those trades have had very significant gains since the post on Wednesday morning and although I believe there is most likely considerable upside left in each trade, many of these stocks are already approaching the first resistance levels where a pullback is likely, especially considering the very near-term overbought conditions on some of these stocks.
Translation: Longer-term swing traders should not be overly concerned and should continue scaling into those names, albeit strategically adding lots on pullbacks, not while prices have run into resistance while overbought in the short-term. Shorter-term, more active traders might want to book some or possibly all profits, depending on how large an initial position was taken in some of these names as every single trade is already up in the mid-teens (percentage-wise) since the post on Wednesday morning (except TRX which peaked at about a 30% gain today before falling back in the 20%+ gain range). Even if one’s initial position size was small, it is often prudent to book such gains when the come in such short order. Again, booking the quick profits with the intention to recycle back into the position on a pullback is generally for active traders, not typical swing traders or longer-term investors who might be starting to accumulate a position in the miners here.
As there is still some room before my earliest targets (i.e- resistance or potential pullback levels), I’d like to spend a little more time tonight and tomorrow to put together my notes and charts on those trades and the sector before wrapping up the video update. Although I’ll continue to be in quasi-vacation mode this week, I’ll also make a point to update my thoughts on the broad market and some of the other trade ideas tomorrow as well.