Friday, February 14, 2014

The Rising Tide in Gold Stocks

I started tinkering with Google Finance Portfolios, because I'm finding the Yahoo Finance portfolios lacking/clunky in some respects.  There is an official track sheet of my positions at Oxford Club HQ, but I don't have direct access to it.

Anyway, I've noticed that the rising tide in precious metals companies is pretty strong. Here is the performance year-to-date of my open positions in Gold & Resource Trader, which is a mix of gold/silver producers, oil & gas companies and industrials, but recently heavily weighted toward precious metals ...

A gain of 135% since the beginning of the year in these stocks isn't too shabby. It helps that gold miners started the year pounded into the dirt, and I added to underwater positions, which some traders will never do. I couldn't help myself. Fundamentally, these stocks were super-cheap.

My subscribers have experienced a huge swing in what their recommended positions are worth. They just had to ride the Devil's Own Rollercoaster l to get there.

And sure, a rising tide lifts all boats.  So I'm not going to take too much credit for gold miners going up when gold is turning more bullish.  But time and again, my picks are outperforming the broad mining industry. That's the real trick.

Note that this is only the open positions. I have closed out some losers. I've had more closed winners than losers, but I tend to cut my losers short. I'm sure if we included those positions I closed at a loss, it wouldn't be nearly as impressive. But Google Finance doesn't track that, at least that I've figured out so far.

By the way, if you know if Google Finance Portfolios credits you for dividends, drop me a note. I know the official track at work will do that, and I can always square it that way. But the more I learn about my online tools, the better.

We'll see how chipper I feel during gold's next correction. Anyone can do well when things are going up. What do you do when things go down? That's the question.

As long as gold achieves that $1,327 target I've laid out, I think a correction is a buying opportunity. If gold turns lower before then, well, that's why we are using trailing protective stops, right?

Whatever you do, be careful. This market is a cruel and unforgiving bitch. But we're also seeing there are plenty of opportunities to profit, at least so far.

Good luck and good trades,


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