Thursday, June 9, 2011

Heavy Metal Movement


10:25 am (Hawaii) Bouncy day in precious metals today. Moves of 1.5% and higher in dozens of PM plays. Smaller miners gained huge chunks on light volume. GPL (+10.9%) to 2.85. AG (+6.4%) to 18.69, XG (+6.1%) to 11.30. EXK (+5.9%) to 8.44. AVL (+5.1%) to 6.41. But again, the soft buying isn't convincing.

GPL 2.5 mil shares traded yesterday, 1.8 mil today
AG 1.36 mil yesterday, 976K today
XG 257K yesterday, 230K today
EXK 4.1 mil yesterday, 2.0 mil today
AVL 2.5 mil yesterday, 1.5 mil today

It goes on and on. My gut said, Get some EXK and XG before the bell. But the numbers spell out the truth: PMs are still on thin, thin ice here. After six sessions in a row of struggle, the dead cat bounced high. But now it's flat on its face again.

My Metals list is 72% green, 26% red. It feels not good to have not a shred of profit off this, but I don't need to be early to make money. If this bounce is for real and PMs are ready to rally, I've got time. But gold has flopped about in the past two summers even in the midst of a bull market. Instead of following risk-crazy fish out of water to be dead on some boat, I'll be a pilot fish and follow the whales and sharks carefully.

The worst plays on my Metals list: MCP (-4.1%), DUST (-3.5%), ZSL (-3.1%), FSG (-1.4%).

Still have my small position in DGP, which is up 0.9% to 49.44. I'm 90% cash.

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