The no-brainer for the next few years is Gold and Silver. So it's easy to trade. Just buy the dips and sell when the price goes parabolic, like a rhino-horn. Some of the stocks are pretty funky, and will not always trade in harmony with the metals.
There are various reasons for this, traders trying to squeeze people, forward sales by the miners, etc.
The bottom for this run is in, and it did go lower than I expected, which is why I hedged my statements. Let the others risk their money at the bottoms, and give up a few points just to make sure that you aren't buying before the bottom is in.
Here's the thing- during various economic cycles certain asset classes are better to be in while others you want to stay away from.
In this cycle, where we have excess monetary creation, AKA inflation, commodities are where you want to be in general. Never get tied to any asset class, as after gold peaks you will want to get out. There are always people who buy the fundamental story and stay in too long. They're not traders and they don't understand the markets. When things get extremly overbought, they will get sold, often oversold. The market is rarely ever at fair value, rather it oscillates up and down. Until you understand that, you won't make money in the markets.
That was a good play to sell CDE. All it takes is a look at that chart to see there's something wrong with it. Here's a link to stockcharts where I divided CDE by Sliver. If it doesn't show an uptrend, meaning it's outperforming the metal, there's something wrong with it!
http://tinyurl.com/7ygy2Right now all stocks are in a downtrend in general. The US markets have faired better than most, which are in bear market corrections. Don't be fooled by the rally last week in the dow, the downtrend is still intact. Friday's failure to break out of that suggests that next week will be a big test. IF we don't go up on Monday, stay out.
Housing is rolling over, and the housing stocks have already been slammed. Homeowners beware.
