I left out a very large chart, but the comentary communicates the point.

...my own equity portfolio, which is almost in entirety made up of precious metal mining stocks (in excess of 40 companies), and has hit new recovery highs in the last 2 days, even whilst the HUI and XAU Precious Metal indexes are still more than 10% below theirs, This I believe is a consequence of a higher weighting within my portfolio of silver stocks and junior exploration stocks, both of which have tended to underperform in the consolidation/correction phases of this precious metals bull market, but outperform when the sun is starting to shine again!

But my portfolio aside, one only has to study the performance of the Big 3 Silver Stocks (Silver Wheaton/ Pan American Silver/Silver Standard Resources) which have shown extra-ordinary strength during this latest corrective phase in the price of silver, strength that from past experience tends to have very positive connotations for the future direction of the sector.

Their share prices are hardly 5% below recovery highs (whilst silver’s circa 10%), On top of this volumes traded have contracted while their share prices have found support, In the case of Pan American and Silver Wheaton On Balance Volume is still showing strong upwards direction and the Bollinger bands for all these stocks are white knuckle tight, indicating the likelyhood of big moves dead ahead!

...in the last week we have witnessed the other precious metals, Platinum and Palladium, breakout to new recovery highs, together with big moves higher in Copper and Oil, BHP Biliton one of the Global Mining Giants in the commodity sector has finally broken higher through resistance at £20 a share, a battle that has been on going for much of the last quarter of last year and whose action alone sends huge positive sentiment to the general commodity complex.

In summary, for the more cautious conservatives among you, it is still perhaps a tad early to conclude anything truly definitive at this stage on the near term direction in silver (we should have a fuller picture in the next week or so), but then isn’t that always the case before a big move comes, However many of the time proven indicators are starting to flash up on my control desk and as importantly in my traders gut, We all know the fundamental picture’s hugely positive for gold and silver right now, so if the technical’s turn their way too, it’s gonna get very tough for any testicles hiding some bankers silver shorts!

Go long, stay strong and hope my gut’s not got it wrong.

Wishing you all a truly New Years
Best,
Rich (Live from ‘The Scarborough Bullion Desk’)