RYPMX closed +0.01 @ 59.59, flat as a pancake! I was pretty sure the risk of
significant downside was limited, as buying on extremes in negative
sentiment usually provides a good backstop. The backstop fades quickly after a
day, and holding the position any longer would involve 'hope.' Hope is not a
great strategy, as the term 'slope of hope' implies- miners are now more likely
to continue sliding. (For instance, had I held November 29 hoping for further
gains, I would now be looking at a -6.3% loss.)
NLS - new 52 wk high and it's got a strong uptrend going. I would say wait for a proper Landry buy point though.
ReplyDeleteI just call 'em as I see 'em. But it's insane how often the way I see it coincides with a massively wrong call by at least one of the commentators I follow, to the point of validating the market as real-life sadist. The market really does inflict maximum pain on the majority of participants most of the time.
ReplyDeleteIn other words, I think gold/miners have significant downside ahead.
DeleteBut I'm not willing to place money on that call. Partly b/c I think a short position would also entail a great deal of pain.
DeleteThat's the funny thing about gold/silver miners, they've been oversold for years, going on a decade and still can't seem to gain traction by increasing their profits.
DeleteYep, maybe too high extraction costs. Maybe can't get loans from Wall Street. Maybe the mgmt is not for the shareholders but for themselves. Maybe the biz is just too capital intensive. Maybe there are better opportunities than waiting for mine development in the fullness of time. I am not a gold bug but I do own PHYS/PSLV and RBY. Hedges.
DeleteGold and silver spot prices drop overnight. 'Nuff said.
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