is today a good day to sell.....

NumbersUsacom

Mining stocks?

MoneyLA

here are the standard answers to your question:

1. what is your financial situation that might indicate a sale?

2. do you have a profit to lock in?

3. do you have a loss to lock in?

4. do you need the money for another investment?

5. do you need the money to pay some bills?

6. do you know something about the direction of the stock in question?

7. are you unsure about holding the stock?


answer those questions, and then I've got a dozen more for you.

best of luck.

NumbersUsacom

Just speaking from a technical/chartist point of view all other variables aside, except slightly considering the the economic and mining fundamentals

surrounding the mining stocks.

MoneyLA

I'd be happy to look at the charts of the stocks in question... post their symbols and I will look them up.

roadrunner

If you've made 50-100% on the recent mining stock move then it would not be dumb to record a profit and await another major pullback. That said, the miners will be one of the best recovery stories after their beat down this summer and fall. Ultimately solid mining stocks will increase 5-20X over the next 3-7 years. Some of the high flying juniors that succeed will far outstrip those multiples.
Here is one situation where sitting on the same stocks for a couple of years will work just fine. Many were pummeled to below their actual break up valuations.

roadrunner

NumbersUsacom

Here they are MoneyLa ; fcx, abx, nem, gg, pmpix

mhammerman

Maybe there's some mine pickers in here?

MoneyLA

Here's how I read the charts:

NEM shows a reverse head and shoulders pattern which is bullish. If it can break out above $45 youre off to the races. Even a close above $40 is bullish.

ABX has broken out from its declining trend line, but it has a more shallow reverse head and shoulders pattern. but this is also showing a short term bullish pattern.

FCX has had a long and steady decline and MIGHT be building a base right now. There is no clear sign that this stock is ready to move higher. Wait on this one.

GG is a lot like ABX in that it has broken out from its declining trend line, showing a shallow reverse head and shoulders, and also showing a bullish pattern now.

PMPLX has had a rough going, and frankly I'd like to see more base building or a steeper recovery before touch this one. On the plus side, it has broken its declining trend line, and it seems to have made a nice short term base with a cup formation. That's all positive. But the negative for this one is that it has suffered a lot of damage and there is no clear sign that it has a sufficient base.

Hope this helps.

By the way, I decided to put this on my web site also. It was a fun exercise.

NumbersUsacom

Thanks MoneyLa,
Appreciate the current technical read on these, and their future outlook.

ProofCollection

Gold is most likely going to hit at least $875 in the near future. As the price of gold does affect mining stocks significantly, I would hold out for at least $875 gold if not more.

roadrunner

Watch the USDollar index as it will drive the gold price in the short term. If it corrects and turns back up for any length of time, you might way to consider selling....and buy back.

Barrick (ABX) has already increased 50% from it's recent bottom. Yeah, I'd say that was a "good" sign of a recovery. Goldcorp (GG) has also turned sharply back from around 18-19 to now at 28.

FCX is 80% dependent on base metal's mining (copper, zinc, lead, etc.) Gold is small component. When demand for copper (ie industrial growth) changes it will be time for FCX again. But I'd stick with the producing gold miners for now. ABX, GG, NM, AEM, KGC, AUY are all decent picks. The only drawbacks are the geo-political or environmental risks. If Joe Dictactor decides to nationalize or shutdown a key mine in your company's holdings, it won't help. Try to stick with companies whose mines are concentrated in historically stable regions like Canada, Australia, etc. While one probably cannot eliminate this risk no matter what mining companies you choose, it can me mitigated. The time is coming within the next 3-7 years where you can throw at dart at the gold mining sector board and hit a strong winner similar to dot.com stocks in the late 1990's. That's not to say that 90% of the untried juniors won't go belly up. The producers offer the safer outcome.

roadrunner

NumbersUsacom

ThankYou RoadRunner for the fundamentals insight into the gold stocks and the explanation on fcx.