Trimmed 15% Ahead Of Expected Correction

No doubt the miners and metals are on fire, or that they have much higher to do. I decided to trim 15%, and might double that to 30% if my signals to sell get close again. Mind you, they are just barely trying to cross over to a sell/trim, and each time before the signal is confirmed, a huge rally appears and cancels the sell idea. In any case, after repeated flirting with and exit sign, I have decided to sell the 15% just ahead of the signal, and the other 15-18% on the other side of it, since the gains have been spectacular.

Already the HUI gold miners index is nearing 600, while GDX and GDXJ have surpassed my first big targets, and by a good amount. Don’t misunderstand me, this is not an excuse to cash out, on the contrary, no matter how large the gains are, its a sign of a truly powerful bull market. I intend to use the proceeds from sales to invest again when the froth dies down, but will also use the opportunity to re-balance and invest more in certain names and less in others, than I had for this first big push in the bull market. For example, I might go heavier into silver itself via PSLV, and into some juniors and explorers, than the mid-caps that have just done what I hoped they would do.

We are at an important point in the bull, where the temptation to sell out is great, in order to book gigantic unrealized gains. Its also where those that missed the move, now see all the money being made and are thinking they know why, likewise those with too small positions feel the greed and want to push. Both sides can’t be right, but I suspect since they are both prominent right now, corrections might be mild while they will still occur. I begun to take some off the table, feeling the fear the miners might not come back down to let me buy again! LOL, that is a sign to book some profits, because while the bull has much higher to fly, that does not mean it will go straight up from here, more likely we will see late bulls get punished for awhile until the give up, and that could require several months or more of sideways or drifting lower first, if we don’t see a short but sharp crack in the markets. October is near, after all.

Stay tuned for the anticipated sells I will make, and the subsequent buys back in, with changes in position sizes and the miners I focus on for the remainder of the bull market. As always, be careful who you listen to, and verify they make the returns they claim. An advisor should not hesitate to show you investing statements to confirm their claims, too many people claim to make money in the markets while in reality they make money off subscriptions, while losing people’s money.