Time To Be Very Selective – Best Looking Sectors: Gold, Silver, LEDs, Movie Industry

by Olivier on May 18, 2010

Lots of charts I went through tonight look very vulnerable at this point in time. I am seeing lots of stocks that are starting to roll over. At the slightest hint of bad news these stocks could literally get killed. Great time to get rid of some charts on my public list where technicals have deteriorated. Here’s the one’s I removed:

  • ANO – Anooraq Resources: No need to follow that one anymore. SWC – Stillwater Mining has proven to be the stronger stock. SWC needs more time to set up again though.
  • FIS.V – Fission Energy: Going nowhere. Adios.
  • FPX.V – First Point Minerals: Stock got hyped like there’s no tomorrow. Retail traders got sucked in and the stock has put in a blow off top on 20 times average volume.
  • MVG – Mag Silver: Better silver stocks out there with almost no overhead resistance. SLW – Silver Wheaton is an example for such a stock.
  • RM.V – Rodinia Minerals: Chart now looks ugly as overhead resistance has become a huge issue. No buying pressure whatsoever. My best guess would be the company won’t make it. As long as the chart doesn’t tell me otherwise I have no reason to change my mind. Other Lithium Mining Stocks look vulnerable as well.
  • TRR.V – Trelawney Mining: Chart looks ok. Still, I am not interested in that stock anymore.

Here’s a few charts that are looking much better and might be able to break out to the upside if the market can stage any kind of move to the upside:

  • FNV.TO – Franco Nevada: Holding up well.
  • SLW – Silver Wheaton: Strongest silver stock around. Trading very close to its all time high. Technically strong.
  • BTN – Ballantyne Strong: Trading at its 52 week high. Outperforming the market.
  • IMAX – Imax Corp.: Acting well. Very strong chart.
  • HOV – Hovnanian: Homebuilder. Somewhat stronger chart than its peers.
  • EMAN – Emagin: Stock needs more time. Overall not looking too bad.
  • NANO – Nanometrics: Chart looks like it has the potential to set up for a big move.
  • PAAS – Pan American Silver: Consolidating nicely.
  • EXK – Endeavour Silver: Looks similar to MVG – Mag Silver except for the fact it is holding up better and has much less overhead resistance.
  • SMF.TO – Semafo: Strong stock.
  • GLD – Gold ETF: Gold looks very strong. Let’s see if it can move up again after some more consolidation.


What I see going on within my public list is more or less exactly what is going on within the broader market. The market still has the potential to move up to new 52 week highs. But there are now much less stocks that will be able to support such a move. It is getting late in the cycle and it is imperative to be extremely selective going long stocks.

The most bullish charts are part of the following sectors that are showing a lot of resilience. One way to play silver stocks would be to buy the new Silver Miner ETF.

The average man doesn’t wish to be told that it is a bull or a bear market. What he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesn’t even wish to have to think. – Jesse Livermore

My public list with all my charts can be viewed here:

Buenas noches!

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