Metal stock upside breakout close at hand…

Posted by Chris Kimble on 03/01/2011 at 10:11 am; This entry is filed under Gold Stocks, Silver Stocks.

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Game Plan...own SLV and want to be an owner of SIL (Silver stocks) on a breakout at (2).

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10 Comments

  1. mike barker March 1st, 2011 at 2:02 pm

    Chris…why does silver go up when dollar goes down? And if silver rises, does that portend trouble for stocks or is that good for stocks?

  2. Chris Kimble March 1st, 2011 at 2:55 pm

    Mike…they usually have an inverse correlation, yet that is not always so per Silver and the Dollar. If silver does blast off from here, I suspect it will mean stocks are going to be challenged.

  3. stemphos March 2nd, 2011 at 9:25 am

    Chris,

    Are you a buyer of SIL if it closes today above $28.00 or do you need further confirmation (i.e. retest of support?)

    thanks,
    stemphos

  4. mike barker March 2nd, 2011 at 10:23 am

    Chris…I’m just about to pull the trigger on SIL as it hit 27.09 so far this morning. With stemphos, I, too and wondering if it has cleared that resistance enough to go for it?

  5. Chris Kimble March 2nd, 2011 at 10:26 am

    Stemphos…I REALLY, REALLY live the action of Silver/SLV. I suspect I have bored you and many blog viewers with posts along this line, yet that is about the only way I know how to express what to own…I believe that if Helen Keller was viewing the blog, she could “SEE” that we should why to own SILVER…Power of the Pattern! So if Silver moves a ton higher, shouldn’t silver stocks move much higher too? I suppect 80%+ of the time this is true. When is it not true? Its when the stock market takes a big decline! What happened to gold stocks in 2008 when gold was moving higher? They got hit VERY HARD, due to the stock market decline.

    So if you are bullish the stock market, really load up on SIL! If you are concerned about the stock market and want to own silver, I feel you should over weight SLV and own some SIL, just be very cautious about the size of the position. I hope this helps a little Stemphos with your question.
    Chris

  6. Chris Kimble March 2nd, 2011 at 10:37 am

    Mike…see comment I made to him. If you want to own assets in the Silver arena, I would overweight towards the metal. Humbly, I am concerned that if support on the 500/NDX gives way, Silver stocks sould struggle holding their value, even in Silver busts to the upside.

  7. stemphos March 2nd, 2011 at 11:29 am

    Thanks Chris

    I now look at this as a no-brainer. I bought SLV at ~$27, so I am totally agree with your statement above.

    I think that SIL has lagged SLV alittle, so short-term SIL may outperform SLV. I will go ahead and buy SIL on your recommendation

    As always, thanks for sharing your insight

    stemphos

  8. Chris Kimble March 2nd, 2011 at 11:36 am

    Stemphos…if silver heads higher and the broad market hangs in their, SIL could do REALLY well! Like I shared, I would own it, just a underweight for the time being. If this breakout is for real, I am ok with buying it a little higher!

  9. Sonny March 3rd, 2011 at 9:58 am

    Chris, you said “I suspect that I have bored you and many blog viewers…”

    Don’t even think that. This site is a treasure trove and your work and sharing are exceptional assets. Is there anyone who thinks a treasure trove is boring? I don’t think so.

  10. Chris Kimble March 3rd, 2011 at 10:14 am

    Sonny… I am humbled and honored by your kind words. I apppreciate all of the viewers to this blog. I know I will be wrong a third of the time, yet I will do my best to “inflate portfolios regardless of market direction” and attempt to have a little fun along the way.

    Thanks again Sonny, I apprecaite everyone during this unique times we live in!!!
    Chris