Back To The Mining Well: A Big Move Ahead?

A bunch of mining stocks printed an inside day on Friday. An inside day is, very simply: A candlestick formation that occurs when the entire daily price range for a given security falls within the price range of the previous day.

I always take note when a volatile group as the miners have an inside day because it tends to lead to a big move. We booked a 20% gain on NUGT and 50% on an option trade when we noticed that many mining stocks printed an inside day on 6/28/13 Mining For Ideas. On 7/10 to 7/22 we took NUGT for a 25% gain when the GDX printed an inside day. From 8/23 to 8/27 we took the NUGT for a 12% gain when we noticed the same thing as we did on 6/28, From Out Of Favor To In Favor.

You never know what is going to happen after an inside day, the stock can go either way, but you have to assume that there is a high probability that it will move in the precedent direction. The fact that so many mining names had an inside day tells me that chances are high that they will be in play today. Very simply what I have done is set alerts on the stocks that printed an inside day, the alerts will trigger if the stock breaks Friday’s high (9/6/2013). If one wanted to get involved, the easiest way is going with the ETF’S; GDX, NUGT, GDXJ. When one stock triggers (breaks Friday’s high) I buy some NUGT, when another one triggers I buy more and so on and so on. You can also set alerts at the lows of Friday as well for all these stocks and go short via DUST or GDX if they start to take out Friday’s low.

Here are the mining stocks that printed an inside day: EXK AG SLW EGO SSRI GOLD AUY PVG PZG AEM NEM SAND GORO PAAS BAA UGLD GDX VGZ.




Disclosure: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.