The GDX chart below is a weekly chart going back twenty years, just to show how definitively the miners have taken out the all-time highs. Look to the right side of the chart to see the last seven weeks close up, its a rip-snorting bull market! I also posted a monthly chart of SILJ, also trading in all time high territory. This bull is real and has legs, that is VERY strong momentum!

While miners are clearly overbought, and a correction could occur at any time, the right move has been to stay heavily long. If we get a correction, say if GDX can pull back to its previous all time highs, it is a screaming buy opportunity. However, since momentum is so strong at the moment, we not only might not get the pullback until we see higher prices first, we also might not get a deep pullback. Our portfolios are up huge at the moment with unrealized gains, several holdings are up 400-600% already, so the temptation to ring the register is great here, but my system has told me to stay long and that has paid off nicely thus far. When I get a signal to sell, I will only trim around 33%, as new all-time highs are a sure sign the miners and metals are going much higher before the bull is over. I would also look to put those funds from any sales I might do, back into the group on the pullback if it materializes. I hope you are long and strong the miners, their time has come!

GDX broke out with force into new all-time highs on the longer term charts. One by one these miner etfs are going to follow each other to new historic highs, what.a change from a year ago. It’s still not too late, there is no bull like a bull market in precious metals miners! Gold and silver are breaking out as well, lending on going support to the extended rally in miners.

Looking forward to other trade setups, it still feels too early to short technology stocks including semiconductors, but maybe after we get the FOMC rate cut in a few weeks? Same with bitcoin, its looking vulnerable and when the die-hard fans of crypto realize they no longer double every time they go up, or worse, they go down big percentages and don’t bounce back like they used to, they very well could run to the best performing sector in the world today. There wreckless buying to cahse performance could be exactly that puts the finishing touches on this precious metals bull.

One by one the mining etfs are following the $XAU index to new all-time highs. Even better, there is still lots of upside left in this bull market.

The title says it all. Let’s watch the $XAU miners index as a tell for future upside in the $HUI, GDX, GDXJ, SIL, and SILJ. They all will follow.

I have posted and updated monthly chart of SIL, also re-drawn the horizontal trend line that is clearly broken to the upside, no matter which chart we use. SIL is gunning for it’s all-time highs next, up around $80, and likely go much higher than that. We remain long and strong, with a five-bagger aleady in DSVSF, and several three-baggers+, such as CDE, ORLA, AAGFF, ASM, ANPMF, and others. The bull market in miners is here!

Several mining etfs including GDX, GDXJ, and SIL have closed at new daily highs for the bull market, and if they hold up into Friday’s close, they will be new weekly highs as well. The pullback over the last few weeks now appears to be nothing more than a typical shakeout. I added back shares I had trimmed back in mid-July, and think SILJ is next to break out. Silver itself might not be far behind, either, which would be another catalyst on top of the fact the miners’ earnings report season has just begun, with many of their stocks responding very well to blowout results to the upside. Case in point, the consolidation in SSRM after a huge run appears to be over, with the stock flying over 16% higher yesterday, smashing into new bull market highs. Let’s see what the rest of the miners can do, being the Q2 results being reported being the best in history for many of our holdings. Many of our miners are up several hundred percent already, but this group can fly like no other, and there is still lots of gains to be made, we remain heavily loaded.

Also we must not forget how well the precious metals and their miners did earlier in the year, when the stock market puked and the miners took off higher. It looks as though the stock market might be in for some downside, this should provide an additional catalyst to boost the miners higher on top of the stellar earnings being reported. Stay long and strong, no need to watch or respond to every tick, the group is headed higher.

A few charts of the etfs mentioned above:

Will there be pullbacks along the ride to much higher prices, sure, but they are to be bought. Many of the smallest junior miners are just starting to move, another sign the bull is still in its early stages. I might take some profits in our accounts, if the miners get over-extended on the longer-term charts, but still I will look to put those funds back to work on any significant pullbacks to new support levels. Try not to get too fancy, stick with the strong trend higher for most of your positions, lots more upside to come!

The monthly chart of the SIL etf speaks for itself, will 5X be a charm? Either way, with a wide open MACD like that, SIL is likely to get a further push higher as its already in new closing-high territory since 2013. All-time highs are coming soon.

On the news that HCHDF (or, HOC.L in London) suspended one of their mine operations for six weeks to improve the output, Hochschild Mining dropped 20% yesterday, and is already down over 27% from the recent highs. We bought a full position at much lower prices, and yesterday we added to the position since I think the downside was overdone. Since we only added 20% more shares, our average total cost per share now is still only $2.38/share. We are not adding to many positions at this point, only in special situations like this one, and we might also add to AYASF (AYA Gold and Silver) if the can knock it down low enough on the news they are selling some stock to focus on expanding their Bourmaline project. Essentially, there has to be some news that is dropping a miner more than I think it should, considering the news. Other than that we continue to stay loaded up in miners as both silver and not platinum have been shaping up nicely, each making new mulit-years highs recently.

The biggest volume for any week (see blue arrows) since these etfs were created, on the backdrop of Silver breaking out over its last resistance until it attacks the all time-highs near $50. What else needs to be said, better own some metals and miners!

Today I post the SIL etf weekly chart, which is composed of larger silver miners, vs. SILJ which is supposed to focus on junior silver miners, though its weighted heavily towards the mid-caps in the group. Here again we see a significant breakout today, the sixth time SIL has come up to test the $47.50 area. The beautiful thing about this chart is that this move is occurring without much fanfare or participation by investors, also silver itself has just broken the $36 level today, finally clearing the $35 resistance that has held for awhile now. I can confidently say that new all-time highs are in the cards for both SIL and Silver (and SILJ too), and they likely won’t take long to get there. Even better, the percentage gains from here are still substantial, when Silver gets to $50 it will have jumped almost 50% from today’s price, the miners will do even better than that, and the moves in Silver happen very quickly, to add icing on the cake.

Even though we have had a stellar week, one of the best in my career with accounts I manage up more than 20% just this week, there is still tons of upside left in the metals and miners. But you can’t wait much longer, for example, already I would not chase the move with options, or the most speculative juniors since they are both up a lot already in a short period of time. I wouldn’t buy the options here because the upside volatility has exploded and the buyer has to pay up for that, and I won’t add to my junior explorers because they have been starved of operating capital for awhile now, much higher prices and some of them will do secondary offerings in which the dilution will eat up your gains. Still, I have not sold and won’t the options and junior I have at the moment, the unrealized gains are large enough that a dilution for pullback has little chance of knocking me out of the game.

Miners might be moving higher so quickly to catch up to the metals themselves, or investors might be licking their chops thinking of the fat earnings and huge free cash flows that will be reported in the next earnings releases, starting in early August. The miners reported record results for the first quarter, typically the worst of the year for miners, imagine what the numbers will be like this quarter, with higher average selling prices for their metals. In short, the miners have some serious catching up to do, and I am confident they will do it, just like always. They are the place to be now.