I want to explain just how I am doing this. I hope that it will build your confidence in the content of this blog. If I were technological at all… I’d post the actual charts, but, alas, I’m virtually techno-illiterate!
In my analytical program, I have nearly 100 gold and silver mining stocks within the database. On the basis of a relative price strength, I can sort these stocks in this industry group. By doing so, I can then chart them all in any manner I choose. My choice has been to chart all of them, in their order of price strength, with price and volume data from just before the Bull Market in metals kicked off on January 20… not yet 5 months ago, For further clarity, since I took them up in a big way, commencing with their breakout in price, on big volume, back on Friday April the 8th, I put a date marker on the price chart for that date.
Having these charts prepared, I can then flash thru them, and ‘read’ each one, so as to determine which are being ‘coveted’ by traders and investors as the very best of the entire bunch, and which are being largely overlooked or discarded. Of the near 100, the top 40 or so appear to hold my interest, and from among them, I had selected for purchase almost 20 of those from the top 40 of the entire near 100.
Each day since, I’ve charted these, and since discarded 2 as not being ‘worthy’ and replaced them with 2 others that were definitely among the best. The result has been tremendous!
I write up, as briefly as possible, at the end of each day, what I saw that the gold and silver prices did. I then take a quick look at my trading account for either red or green, to look for correspondence among my holdings with the move in the metals prices. From those two observations, I surmise what I expect I should find when I re-chart all my holdings, along with the ETFs for gold and for silver, and for 2 ETFs of mining shares, GDX and SGDM, and for my favorite royalty ETFs, RGLD and SLW.
The reason I chart those along with my actual individual mining holdings, in the order of their price strength, is so that I can see each day if my stocks are running ahead in price stronger than the royalty companies and the metals themselves. As long as they are doing that, we are profiting in the bull market in the metals at a rate that is better than the price moves of the metals, the mining ETF funds and the metals royalty firms themselves. Or, in other words, of the gold and silver mining stocks in the database, we’re trying to keep our money in the very best of the entire lot.
And, it works! My mining stocks are outperforming the metals. They are outperforming the mining funds, and they are outperforming the royalty firms! I am finding the best of the group, and intend to ride them for all they are worth… hopefully unto hundreds of % in gains. Come on along… let’s get there together!
Monday morning, just before the open, and the metals are very little changed over the weekend… the Friday pop has not been given back in the least! So, let’s see how the miners will open.
Here’s to your accumulation of real wealth!
Harold F Crowell