Saturday, January 13, 2007

Back on board

Ever the optimist, I remain wedded to my PM positions despite taking a little defensive action on the most recent HUI breakdown. Since the HUI remains under its 200 dma, it is still a good entry point according to Adam Hamilton (latest article here).

Previously, I disclosed getting out of Eldorado (EGO) and Hecla (HL) while buying GDX puts as a short term trade. The puts were closed at a profit on Thursday. EGO was bought back on Friday when all commodities enjoyed a strong rally. It was actually a little higher than when I sold it. On Hecla, I was very lucky to have sidestepped the big drop due to concerns over its operations in Venezuela. I replaced it with KGC instead. On balance, these trades more than paid for my projected commissions for the entire year, but the emotional calmness they brought me was far more valuable.

So now the waiting begins. Best of luck to all.