No Rush To Buy Precious Metals

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.

There are 2 major views on the metals right now.

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the bull is dead
the bull is hibernating

I'm in the 3rd group. The bull is still alive, but I would not be in any rush to buy any miners until there is a significant flush out. Let these two groups fight it out and stay safely on the sidelines until some decent trading opportunities arise. I suspect we're getting into the range where one can expect a bounce but it's not the sort of bounce that you buy because there really is no support below. If we were to bounce I would watch the RSI on the daily chart and if it gets back near 60 then that is the area that would represent a good shorting opportunity. Below are the stocks I'm focusing on.

That should take us to new lows and hopefully a landslide, capitulatory sell off which would be an amazing buying opportunity because at that time I can see anybody that will be stepping up to the plate to buy gold/silver stocks.

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