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.

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!