During the time between my last post and yesterday, I have continued buying back miner shares that I sold back in late January. The summer doldrums have kept a lid on things, and while the downtrend has has not broken, and my purchases appear to have been early, I am happy to say that they aren’t much below my entry prices, since it was the spike lower in that week of June 6th that I got started buying again. Now that summer is winding up, and the technicals have gotten back into sync suggesting a move higher is imminent, I have been busy again this week adding mining shares, enough so that the accounts I manage are back up to 84% invested, with only 16% cash left to deploy. I also initiated my first buys in the Uranium mining sector, with names like CCJ, NXE, DNN, UEC, UUUU, PALAF, URG, and DYL.AX, and will look to build up the positions.

With the new chairman’s first rate decision out of the way as of Wednesday, and after a strong up day for both precious metals and uranium miners yesterday (Thursday), I believe the stage is set for a decent rally or more, over the next 6-10 weeks into late September or early October. For now I only have my BUY cap on for the next few days, and will wait to see how strong the rally is, to decide if I will trim into this next intermediate move higher, and how much to sell if I do any selling. One thing to keep in mind is that technology stocks seem to be rolling over finally. That could eventually be a source of funds that flow into miners and metals and support them, but initially I would expect our holdings to get dragged lower as everything gets tossed out in the early stage of a bear market if there is panic. I don’t know if a raging bear is around the corner, but I know we are invested the best group to fight it, and eventually benefit from a capital rotation event.

For now just a quick weekly chart of the $HUI index. Recall that I don’t treat trend lines as specific points that matter, so I draw them the way I can best see the bigger picture. Some insist on only touching thetip of each wick, others place their lies where they have the most contact points, even if each top goes over the trend line for a short while, but to me I just want to see the obvious trend direction and slope from across the room, and when that line is broken, to expect a move in the opposite direction. In my experience these lines get tested and “broken” all the time, only to come back and get into the trend again. Its the clear and obvious breaks that cause me to take note.

By my measure, HUI isn’t there just yet as I type, but a strong close to this week, or upside next week, will be a sign this pullback is over for now. The move lower has extended long enough consiering the seasonal tendencies, and the many very oversold technicals such as stochastics and MACD, sentiment too is in the dumps. The window won’t be open for long, but seems to me this is a good time to increase exposure.