SILJ Has Now Pulled Back 25%

SILJ has pulled back over 25% in this correction lasting just a few weeks. While I tend to think the bulk of the downside is now behind us as far as price, given the time of year, weakening stock and crypto markets (risk assets), it won’t surprise me to see metals and miners dragged lower for awhile. While we wait for the moving averages to catch up with price, the best I can see is prices moving sideways as time passes, maybe one or two months before recharging the bull for the next big move higher. I am not selling anything into this weakness, as we already sold one-third of holdings several weeks ago. However, while my intention is to put the funds back work in miners, I have only nibbled here and there so far, in special situations where I think the recent downside has been overdone. Stocks like HOC.L, AAGFF, and ASM would qualify, even then I have only stuck my toe back in the water, and will stick with what we have until those moving averages catch up to price (the 30 WEEK MA for intermediate holding times, or the 12 MONTH MA for longer term holdings).

Meanwhile, fundamentals continue to support the bull, with all-time records for earnings and cash flow being reported now for Q3 results. It is safe to buy dips here now, as long as one doesnt go too heavy, and realizes they will likely have to wait a few months for a large, sustainable rally to take hold. This could happen as early as January, maybe sooner, so I continue to hold about 70% of our positions since its a roaring bull market, after all.