Sunday, September 9, 2012
If anyone thinks that the recent beat down of the mining sector was anything but a contrived phenomenon then all that needs to be done is look back on these same miners in 2008. They were slaughtered for the sharks to pick them up for peanuts. Paraphrasing some very smart players YOU NEVER LET A GOOD CRISIS GO TO WAIST! So they were flushed to hell in 2008 and they ripped them straight up from the bottom. Will they go straight up again from the current levels?.......maybe but that is not your concern at this point and your answer WILL be given to you. If you believe you've missed the big run in these miners after many have added 40-90% off their recent bottoms then of course you probably will. We just went through a massive accumulation/shakeout. We WILL get more shakeouts ahead. Volatility is a hallmark of this sector. If you can't take it then just stay with physical. It is much easier to tolerate and in the long run may be the only way to play this game. I'm still holding my positions and could care less if they rip it down here. I have some cash to buy some miners if they rip it down since I took a small amount of profit last week. Right now I am looking for their new channels before I actively trade and that may still be weeks off to decide.
We are in the end game now and this is going to be rough ride. I can only hope that Ben and the Bankers can land this ship on the head of a pin. If they can't then we will have a lot more to manage than our gold mining stocks to worry about. GL
Posted by kliguy38 at 3:36 PM