I don’t talk about silver enough. I know I talk about gold a lot, because of the huge big bottom buy signal we got from the GDX/GLD ratio over a week ago and yesterday I wrote about energy stocks, but today I have to talk about silver.
Silver has a great chart and now looks ready to run into the end of the year too.
As you can see silver has a simple triangle consolidation pattern and it looks like it is poised to break out of it. You can see that current support is at $22 an ounce, making now a great time to buy silver or silver ETF’s with a defined risk entry point.
But when silver goes up the right silver stocks go up even more. Here are two big cap miners that I own.
Hecla Mining is one of the few pure silver companies. It is currently paying a 0.73% dividend, which is more than you get from the GDX ETF and more than you get from a CD, and also has a nice simple triangle pattern. What is good about these patterns is that they give you an idea of where you could put a stop loss point – you just look at the lower support trend line.
I also own SVM.
SVM is currently paying a 0.41% dividend. It appears to be building a solid bottom at $5.50.
The stock market got a little tired yesterday and we might enter a churning, but bullish, market for the rest of this week and even next week. I saw some reactions from CNBC personalities on Twitter to yesterday markets and couldn’t stop myself from commenting on them.
In August of 2000 it was argued non stop on CNBC that “cash on the sidelines” was good for the market and it would go up when it came in now it says when there is none it doesn’t matter… now they are finally right it is meaningless! https://t.co/PdHNaxImev
— Mike Swanson (@tradermike_1999) December 7, 2020
Again another thing that doesn’t really matter – but we always have to talk about something all the time! https://t.co/UPPhwWHzGe
— Mike Swanson (@tradermike_1999) December 7, 2020
It doesn’t matter if Yellen or Powell is in charge of the Treasury or the Fed Kelly Evans, because no matter who is there more money printing is down the pike!
Yep, if you are in the business of making commentary on the markets every single day on TV you have to find something to talk about every day all of the time in order to function as an expert even though most of the time nothing important is really happening.
And the thing is in the end all that really matters is the charts!
And that chart of silver is looking fantastic. So is gold of course and my top stock pick for December.
If you want to arm yourself with better understanding of the charts and trading grab my book Strategic Stock Trading.
-Mike
