On 3/2 I shared in a post that I was concerned that a stock market decline could have a large impact to Gold & Silver stocks (see post here) Earlier this week I noted that Gold stocks were breaking key support (see post here) In a different post, patterns in Gold were suggesting investors should be cautious (see post here) Below is a long-term pattern in SLW that should be respected.
CLICK ON CHART TO ENLARGE
Game Plan…If long Silver stocks/SIL we are going to harvest. Should Silver break key support, harvesting will be planned.
Keep in mind due to Copper/FCX breaking key support we are attempting to score on defense, with the purchase of SMN (2X inverse basic materials ETF) a couple of days ago.
Tal…Usually it is all of a position unless otherwise noted. For aggressive traders that were overweighted in PSQ of late (double short postion) they harvested half of that position.
When you say harvesting, are you typically selling all or just a percentage of your holdings?
Mark…yes we are on the trend break.
Are you also harvesting mid-caps?