Seasonally gold prices tend to go up in January more than they do in any other month. With the dollar index making new lows against several major currencies yesterday higher gold prices are inevitable and the thing is mining stocks are now poised to run.
Take a look at the GDX gold stock ETF.
As you can see the GDX has formed a simple triangle consolidation pattern and is in a position to breakout and begin its next rally. Several silver stocks are going up now. Take a look at HL for instance.
I own both GDX and HL. I also own Silver Dollar Resources which also is starting to move again.
I made Silver Dollar Resources my top stock pick of the month in October and still own it. Just yesterday the company announced that First Majestic Resources just completed a strategic private financing in it and now owns 16.3% of all of its shares. “The net proceeds of this financing will be used to fund the Company’s exploration and development work on its projects in Red Lake, Ontario, Canada and Durango, Mexico, and for general working capital purposes,” Silver Dollar Resources reported. So the company is now set for a big 2021 drill program. People like to buy stocks that go up faster than their sector and Silver Dollar Resources is in position to do just that.
Meanwhile, Inca One Gold is also positioned for a simple triangle breakout pattern too.
It sure does look like Inca One Gold is ready to rally. For more on it see the post I made on it earlier this month here. Yesterday I did a post about how stock market volatility is actually shrinking as people take on what has become a record level of margin debt.
I talked about this topic among others with Jim Goddard of www.howestreet.com in this interview.
-Mike
Disclosure: Mike Swanson owns shares of Inca One Mining and Silver Dollar Resources. Because they are small cap stocks with a market cap of less than $100 million he has put himself in a trading blackout on the stock and will not buy or sell a share of them for at least 30-days from the date of this post. Wallstreetwindow.com, is owned by Timingwallstreet, Inc., which is being compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for Inca One Mining. This third party paid Timingwallstreet Inc., $11,000 to produce and disseminate this and other similar articles and send traffic to them through paid advertising campaigns for 30-days from the date of December, 1, 2020. Timingwallstreet, Inc., was also paid $23,000 for a similar campaign for Silver Dollar Resources in October. This compensation should be viewed as a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only. Never invest purely based on our communication. For more on trading risks read our policy statement by clicking here.
