More Changes for the Better

The first susbstantive blog post for this website was back in early/mid-November here, where I described the subtle changes taking place in the precious metals and mining complex. While the road has been sloppy, which should have come as a surprise to no one, those changes for the better continue to take hold. My USLV long, the triple-levered bullish ETF for silver, is leading the charge this morning, benefitting from a minor rotation away from the gold miners, a big reason why I took a chunk of profits in JNUG yesterday. SLV, the silver ETF itself, is back up to its 100-day moving average. But so far the morning gains are holding, and therefore I am, too. As for JNUG, the GDXJ and gold miners in general are staging a mild pause this morning. I suspect many shorts are still trapped from lower prices and have yet to capitulate. I do indeed have the benefit of cushion, though, as I bought JNUG at $35.59 and it is now trading over $40. As long as the metals and miners continue to slog higher and hold the lion's share of recent gains, I still see signs of them morphing from losers into winners. Elsewhere, Alcoa is reversing down after earnings and still looks to be setting up as a short from a loose potential major topping pattern, seen below on the daily chart.