SLI Hubsters:
Here's a little tidbit from 321Gold.com that backs up previous posts regarding gold stocks, patience and stop losses. (highlights mine)
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The Wall Street chatter is about gold and silver being in a bubble. Well, they’re about to get a huge surprise. I’m projecting surprisingly explosive upside action in the gold stocks. It takes patience to see the fundamentals begin to overrule trading patterns. You are finally starting to see gold stocks offer the kind of return you have been waiting on for many years.
- The head and shouldering action on the above chart is classic “wall of worry” building. Inverse head and shoulders patterns that develop in a bull market are a picture of the fears of traders being worked off. Every time the market moves up, buyers step in, only to see price decline and disappoint. The buyers become sellers, accelerating the move lower.
- That head and shouldering picture is exactly what has been happening to gold stocks. Unfortunately the majority of those traders using stop losses lose their positions and the huge potential profits. Selling price declines - in a market that has a tremendously strong fundamental backdrop - almost amounts to financial suicide.
- The most important thing to do now is hold on tight to large portions of your gold stocks portfolio. I recommend a 65% core position. Don’t trade out these core positions because a massive pay day is coming for you.
