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Momentum play update

ronorono
in Off-Topic
Howdy folks,

Hope everyone is doing well. After a day like today, it's hard to be too down.

I've had a momentum play going with a junior silver miner - SVMLF Silvercorp Metals. I also am playing in this same space - EXK and AG. Their charts are pretty (see below). Note that this past week, SVM dropped over 10% between Tuesday and Thursday. 10% was my mental stop loss. feh. Wifey and I were road tripping early Friday, so I put an after hours sale for my total investment (I was rounding second base) and let the rest ride. Friday it was up 5% and another 1% today but at this point, this is house money and still kicking *ss. Here is the chart of my 3 junior silver plays vs. the XAU (gold and silver index). This highlights the leverage I've been touting for years. I was buying SVM at $0.50, .60, 63, 69, and .93 as I scaled into this play. I closed at $1.79 today.

http://bigcharts.marketwatch.com/advchart/frames/frames.asp?nosettings=1&symb=svmlf&uf=0&type=64&size=2&sid=0&style=320&freq=1&entitlementtoken=0c33378313484ba9b46b8e24ded87dd6&time=6&rand=9254&compidx=XAU&comp=exk+ag&ma=0&maval=9&lf=1&lf2=0&lf3=0&height=0&width=0&mocktick=1

I've also been playing SQM and my recent purchase of XOM. For the more restive, I finally found Price's Spectrum Income RPSIX and perhaps due to undeserved good fortune and buying at the bottom . . . it's been a very nice cash fund to balance out some of my insanities in the junior miners. Here's the list for the crazies out there.

http://www.kitcosilver.com/equities.html

and so it goes,

peace,

rono


Comments

  • Old_Skeet
    Hi @rono,

    Thanks for the update.

    Although I don't dabble in this spce I enjoy reading about those investors that come forward and write about what they are doing and what has been working for them.

    Old_Skeet
  • ronorono
    Howdy folks,

    I'm still riding my momentum play in the junior silver miners, albeit it's a bit nuts at times. My big play is with SVM(LF) [SVM is Canadian while SVMLF is it's US version) with side plays in EXK and AG. Here are their charts as compared to the gold and silver mining index XAU.

    http://bigcharts.marketwatch.com/advchart/frames/frames.asp?nosettings=1&symb=svmlf&uf=0&type=64&size=2&sid=0&style=320&freq=1&entitlementtoken=0c33378313484ba9b46b8e24ded87dd6&time=7&rand=3554&compidx=aaaaa:0&comp=ag+exk+xau&ma=0&maval=9&lf=1&lf2=0&lf3=0&height=0&width=0&mocktick=1

    Note that two days ago it was down over 7%, yesterday up over 10% and up around 5% today. This makes it very dicey with a mental stop loss of 10%. I had that 3 day drop a couple of weeks back where it broke -10% and I had to take my first draw down. That's ok, because I was positioned such that I could withdraw all my investment and still play with a nice chunk of 'house money'. Most of my purchases were under $0.70 and it's at $2.42. Works for me.

    Note that while I've been playing crazy person as noted, I've also been drastically increasing my stake in Spectrum Income RPSIX at Price where I have this account.

    and so it goes,

    peace,

    rono
  • hank
    Rono said "Note that while I've been playing crazy person as noted, I've also been drastically increasing my stake in Spectrum Income RPSIX at Price where I have this account."

    Exactly. The old gamblers' song (I think the motto for FA): "Gotta know when to hold em ..."
    RPSIX is a great place to park profits. PRWCX ain't bad either if you already have an account.

    Thanks for the update Rono. Nice work!
  • MarkMark
    @rono - never doubted you for a minute mister. Questioned your sanity, now that's a whole different ball game but I'm sure it works both ways. Party on Garth.
  • ronorono
    Howdy folks,

    Pretty much took my profits yesterday on my momentum play with in the junior silver miners. Left a bit of house money on the table. My lead pony SVMLF was off ~9% and I pulled the trigger. Max Gunther says to always take profits early and I remember Art from FundVision saying 'you can never go broke taking profits'.

    Overall, I had a lot of purchases scaling into this play. For simplicity sake, if I add up all my purchases and divide that number into what I've cashed out AND what is still on the table, I come up with a multiplier of 3.66 - so I more than tripled my money. Works for me.

    Two things to keep in mind. I didn't do this with rent money and this is a field that I'm very familiar with (e.g. I played the Hunt Bros. bull and as witness by many here, I played hell out of the Big Bonanza Bull that ran from 2002 to 2011). So from the Peter Lynch school of investing, buy what you know and understand.

    and so it goes,

    peace,

    rono

  • Old_Skeet
    Hi rono,

    I was wondering how you were fairing?

    Again, thanks for posting.

    Old_Skeet
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