Erik Wetterling – Trading Strategies In Junior Explorers After The Discovery Hole Has Been Made
Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins us to review some trading strategies in gold, silver, and base metals junior exploration stocks, after the initial discovery hole has been made. He discusses that many of the mining investing mantras about “taking half the position off after a double in the stock” or “don’t chase stocks higher” or “take profits early” are actually detrimental to the desire many investors have in seeing multi-bagger returns on junior mining stocks.
We discuss Erik’s observations on how stocks have reacted since discovery in stocks like New Found Gold (NFG), Alpha Exploration (ALEX), as well as using Great Bear Resources (GBR), and Snowline Gold (SGD) as examples of how much a stock can run after the discovery hole. Erik points out that news release about a great discovery hole, isn’t necessarily the news to sell to harvest gains; but rather, sets up the next series of news releases to see if a quality team on a quality project can keep hitting with the drill bit and expanding the resources of an early stage project.
*In full disclosure, many of the companies mentioned by Erik, in this interview include personal positions in his portfolio, and they also may be site sponsors on The Hedgeless Horseman website.
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Interesting juncture for metals. All about US dollar. Gold should recover its recent 1800+close with a dollar close below 104 on inflation news. The lower it goes, the better for gold in the short term.
Unfortunately only a coincidental indicator, good for confirmation of day to day trading.
Real gold strength as a safe have will manifest when it decouples
Thanks for the Horseman updates. Good stuff for followup.
FREAKY FRIDAY…………………………. AGAIN……………
I still think the consolidation scenario for silver is a strong possibility, in which it will fail to maintain itself above the declining 100 WMA (23.42 currently) for more than a couple of weeks.
The bottom line is silver is a bit of a prisoner of the massive chart damage inflicted over the last year. It could take some time to get the long-term moving averages turned back up and in bullish alignment before a massive run to say $100 or 200 is possible.
So 2023 could end up being a very frustrating consolidation period for silver. I do think the absolute low is in, but that doesn’t provide much comfort since that low was at $17.
Silver miners like EXK and AG have lost their footing vs silver fairly dramatically in the last 3 weeks, which has to be concerning. AG:SLV in particular looks nasty. They are strongly suggesting silver’s move over the last few weeks is dumb money entering and that it is going to come down rather dramatically soon.
Hi Green, Dumb money got squeezed out of the crypto market, smart money is entering precious metals, silver especially! If I recall right, you were recently posting that Brixton would move much lower, then you were going to buy, how has that played out for you! LOL! DT
Uh, I said Brixton moving lower back in August September was a possibility but that it was setting up for a moonshot. I have been nothing but bullish on it for a year. I have a very large position in it (for its market cap). I do expect it to be up 10x within 2 years.
Go ahead and margin your trailer and go all in for all I care. The charts are the charts, and the silver miners diverging so strongly from strongly rising silver should be setting off a few alarm bells.
I am long term super bullish. I think a stock like AG could end up $100+ (hows that for bullish delusion). But that doesn’t mean it’s happening in the next 6-12 months. The chart damage silver went through since the Fed started raising is real and has long term consequences.
Brixton unsurprisingly putting in a nasty looking topping candle this week. Risk back to the 20 WMA and/or the 200 WMA.
Silver miners still acting like the worst of the worst. They still can’t manage to outperform the metal itself. Either the last month is just the manipulators trying to buy the miners on the cheap or the market thinks these things are going to be nationalized soon. there is no way to interpret the last month of action in the ratio as anything but long term bearish for silver.
It’s very reminiscent of the (at the time) confusing drop in SIL:SLV back in July-August 2020. It turned out that drop was an alarm bell ringing that silver was headed much lower in the long run even if the miners continued to make nominal new highs for another 12 months.
this continued, frankly pathetic underperformance is strongly suggestive that silver isn’t breaking out for a long long time.
Hi Green, if Brixton put in a nasty looking topping candle this week bring up the chart here for all to see otherwise you will look like “Shoe Polish Joe”, maybe you will have to shine Joe’s shoes! Talk is cheap! LOL! DT
DT, Brixton is in a bull market so surprises to the upside will be common. It reminds me of Claude Resources 9-10 years ago. It is up 51% this month so far (7 trading days) and could accelerate from here as momentum players and the FOMO crowd urgently hop aboard.
The big picture has never looked so good technically or fundamentally.
https://stockcharts.com/h-sc/ui?s=BBB.V&p=M&yr=8&mn=0&dy=0&id=p24306165511&a=1261718382&r=1670624509118&cmd=print
Hi Matthew, I may “Press The Bet”, on Brixton all the way up! It reminds me of AUR Resources, the stepping stairway up, I like stocks that just keep inching up a little day after day like Aur did, I bought Aur for about 30 cents and I just watched as it kept going up in small increments until you turned around and it was at $3.00, and then Aur got bought out. Cheers my friend! DT😊
I think it was more than a month ago when I said it looked like it was under professional accumulation and it still looks that way today.
Last week it broke above its anchored VWAP based on the 2020 high and now it has broken above its anchored VWAPs based on the 2015 low and the 2016 high…
https://schrts.co/EuMVfHvp
Cheers DT! 🍻
Stock talk: NICU, WAM, NFG, GOG, HWG, ESK, NVO
Erik Wetterling – The Hedgeless Horseman – Dec 8th, 2022
TIMESTAMPS: 0:00 Intro 2:25 Magna Mining 15:24 Western Alaska 27:23 New Found Gold 29:15 Golden Tag 31:07 Headwater Gold 36:24 Eskay Mining 42:47 Novo Resources
https://www.thehedgelesshorseman.com/investing-clips/stock-talk-nicu-wam-nfg-gog-hwg-esk-nvo/