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Gold, Silver and Miners in Stage 1 Accumulation Mode

In the past month I have been giving out some of my stage one trading ideas which have generated some decent gains for those who follow along. All but one have generated gains with First Solar (FSLR) 12.5%, Facebook (FB) 12%, Research In Motion (RIMM) 54%, Apple (AAPL) 5%, iShares Barclays 20+ Year Treas Bond (TLT) 2.5%, Utilities Select Sector SPDR (XLU) 1.5% and Market Vectors Coal ETF (KOL) down 5.2%. Keep in mind that you can follow my trading charts live for free and get some of my stock and ETF trading ideas here: stockcharts.com).

Silver and Silver Miner Stocks Weekly Analysis:

This chart of silver and silver miner stocks, shows a very similar pattern to that of its big shiny sister, yellow gold. Silver carries a lot more risk because of its industrial usage. Also this commodity is thinly traded and can move very quickly on a daily basis compared to gold. Because of these quick price movements it has attracted a lot of speculative money which also has increased the volatility. More often than not, silver will move 2 to 3 times more on a percentage basis than that of yellow gold.

Battle of the Miner ETFs Weekly Performance:

This chart compares three precious metals miner ETFS ( Market Vectors Gold Miners ETF (GDX), Global X Silver Miners ETF (SIL), Direxion Daily Gold Miners Bull 3X (NUGT)).

Silver miners have held up the best because the herd saw how big the move was a year ago and are front running the next potential rally. But, depending on how you read the charts and sentiment it may be pointing to the dormant gold miners for a bigger than expected rally. But debating which one will break out and run the most is a conversation/debate of its own and even I can argue both sides. The safe play is that even if gold miners (GDX and Market Vectors Junior Gold Miners ETF (GDXJ)) underperform the silver miners (SIL), the NUGT which is 3-times leveraged gold miners should be the same if not outperform silver miners.



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SYM TRADE IT LAST %CHG
SIL $8.76 0.46%
NUGT $11.95 2.80%
GDXJ $24.84 0.89%
GDX $19.88 0.81%
XLU $44.76 1.50%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

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