With gold breaking out today to a new high, and with Bernanke comments being interpreted as constructive to commodity stocks, there are lots of breakouts in the stocks I own.
- Jaguar hopefully has seen a $4 tag for the last time.
- OceanaGold broke well away from the $2.70 level that has proven to be resistance in the past.
- Arcan broke through the $6 level with conviction.
- One of my smaller positions, Geologix, has jumped higher. As I said on my original missive on the company, I bought this stock as a trade on the hypothesis that if commodities go higher it will quickly go back to the 60s.
This is all good news. Let’s hope it is for real. There was an old subscriber service I used to belong to called stocksatbottom. One of their maxim’s was that you had to be in the market because when you looked at the gains made by a stock in a given year, they typically occured in about 2 weeks out of 52. How can you predict when those 2 weeks will occur? You can’t. Who would have guess 3 weeks ago that we would see these kind of moves in oil and gold.
As is my typical strategy, I have added to some stocks with the break out in gold. I added to both Lydian International and to Klondex today. They have not risen yet, but hopefully that is soon to come. I did not add a lot, just enough to gain more leverage if the move continues.
Lydian is now one of my largest holdings. I plan to come out with a post describing my reasons for buying so much of a junior gold explorer (usually a risky business) either later today or tomorrow. I’m not quite finished that post however, so for now I will give you one of the “gold gurus” I follow closely, Brent Cook, and some of his comments on the company.