Thoughts on Markets

Friday, January 14, 2011

A Big Correction in Metals is under way. - FVITF - OLVRF - HL - Questionable DOW


We are in a full fledged correction in the precious metals now. For how long, it is hard to tell. Most have been for not too long a time. This one seems to be a big one, so we must be extremely careful in any trades. 

The situation should be about the same for the general market, as well. The DOW started off down earlier, but has recovered some. The uncertainty in the financial arena and the unrest in the world today points in that direction. It seems that funds are rushing from one place to another which reveals a lot of indecision. This is a dangerous situation. Buyer Beware!!!!

We are privileged to be able to ask, along with the Psalmist, David, "How long, O' Lord?" He, who holds all in the palm of His hands knows precisely. We are not privy to that information, and therefore, we pose the question. Remember that we will seldom, if ever, buy at the bottom and sell at the top. However, when the Lord gives us information and we make our plans committing them to Him, acting on them, and then we must learn to depend upon Him for success. This is His way and He gives us answers much of the time. 

I am not selling my mining stocks at present. The demand for metals remains very high; therefore, I suspect that we will have a swift recovery once it begins. That is the time when many who sell into these things will feel locked out and not get back in when it is important. Then they tend to wait for the next correction.

At some point in time, there will be no more corrections as we move into the third phase of the precious metals bull market.

Below, I will be recapping some of my portfolio miners and the metals, themselves. Please, carefully study the graphs and be cautious on any trades.

First, let's take a look at the metals using the GLD as a proxy for gold and SLV for silver:

Silver looks a bit better, but has still tak en a big hit with more to come, it would seem. It would be very encouraging to see silver remain closer to 29, but it is currently 28.58.

Fortuna has been a steady miner for us. Those of us who bought below $1 are sitting on a good bit of profit which is being threatened. However, I am not selling, as I expect this one to be a keeper until the 3rd phase of the gold/silver rush.

Olivut has been a late comer to my portfolio, but has preformed well. This is also one I am not currently selling. It appears to be slightly stronger than Fortuna for the time being.

Hecla Mining is a very tempting buy below $10. If it goes much lower, I would be interested in getting some more for my portfolios. I would be buying in smaller bites and very cautiously.

Miners from Scottrade:

Currencies from KitCo:

Some Prices: FVITF 4.17; OLVRF 1.107; HHWW 1.82 (This one seems to be holding on well); TBT 38.07 (LT Bonds up a bit today); DOW up 14.72 to 11745+; SPX up 2.39 to 1388.99; Gold off 14.70 to 1359.30; Silver off 0.34 to 28.40.

Best to each, Doug


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