Here is a copy of a chart I have going live at stockcharts.com. The blue lines represent my downside tolerances for holding any trading positions. As such, with yesterday's bogus action probing these lines I released the positions added a couple days ago; GG for a small loss and RGLD for a nice little gain. I still hold RGLD from 29 in a long term account and added a bit of HL to the same account yesterday. But in this enviro it can't be stated strongly enough; cash (aka t-bills & short term treasuries) and bullion are positions too.
The dollar is getting a bit over bought here and crude oil actually looks to be hammering out a reverse symmetrical triangle (bottoming pattern) of sorts. Maybe the gold stocks will get a boost here - for the wrong reasons. If that is the case I will plan on doing a bit more selling while holding the deep value in the sector. Speaking of which, check out a chart of the $CDNX (those Canadian .V's). It has bucked the trend on a couple down days in the markets and MACD and Stochastics are on the verge of triggering to the upside from deeply over sold. I hold some small precious metals stocks that seem to rise and fall with this index (FVI.v mentioned here) and with their quality assets and operations, am not letting them go until much higher prices are had. Whether next month or next year.
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