I am selling my positions in SQI.V and SPM.TO (Silver Quest and Scorpio). I am still a long-term buyer of these stocks, but they have run up quite nicely over the last 3 weeks, and it's time to unload. If you don't want to sell your whole position, that's fine, but I would at least lighten your load to 50% of your original stake.
I'm up 50% and 25% in these, and they are both extremely overbought right now. Remember, we are going to surf this precious metals run like a wave. Waves go up and down people! I prefer not to ride the down wave.
If you look at these stocks via stockcharts or freestockcharts you will see that RSI and MACD are getting ready to roll over. Very hard for the stock to keep rising when these two indicators are about to come down.
This wouldn't be a bad time to hedge any other silver positions with either puts on the SIL or buying the double silver bear fund ZSL.
I'll let you know when I am buying back in, but for now, I'm a seller into strength, not a buyer.
Until the next time...
Fiat Doubter
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