Weekly Update

I must apologize for my absence the last two weeks. I have been on the road, traveling and camping for the last 3 weeks. Though silver and gold may make another retracement lower, it bounced well off the 50% retracement of its last move. This could be the start of the next move up or just a short term bounce to resistance before another retracement and more consolidation.

As you can see, on a daily candle view chart, a 50% retrace should be enough to finish off the consolidation and kickstart another move up. However.... see chart below.

When we zoom out to look at the full baby-bull run, we can see that the retrace has not even made it to either support at 18, or its 38% fib retrace. This is disheartening for me, because I tend to be most impatient. I 'want' the bull market to kick off another leg, but I am cautiously awaiting further pullback.

Market Strategy: I have added a series of positions in some of my favorite stocks that have retraced in the last week. However, I am saving a small amount of cash to keep on hand for a bigger dip. If gold and silver take another dive down to support/fib retrace, I will have to sit in the negative for a while on my long term stock holds, BUT the leveraged miner plays JNUG and NUGT will drop like a rock in water. Even putting a little bit of cash into these when silver drops under 18 should prove to be a very profitable trade when silver bounces. Leveraged ETFs are dangerous plays because of their long term decay and volatility, but buying them after a precipitous drop almost ensures a decent bounce, especially if you are buying them mid-long term anyway.

Good luck. Have fun. Play safe.

I'll have a longer update on Sunday.
-JT