In the hierarchy of risk in the metals sector going from no risk/low reward/low volatility to high risk/reward/volatility we have:
- physical bullion metals in hand (gold, silver, platinum)
- ETFs for physical metals (GLD, SLV, SIVR, SILV, etc.)
- Senior gold miners (GDX)
- Junior gold miners (GDXJ)
- Senior silver miners (SIL)
- Junior silver miners (SILJ)
- 2x junior gold miners (JNUG)
- 2x junior silver miners (SILX)
Below is my Elliott wave model for SILJ. It currently trades at $13.34 and my target price for the next 5 months or so is $38-$42. Common ignorance is that it should be impossible for anyone to make this kind of prediction. I mean, the chart is still pointing down and you are somehow supposed to believe that a near triple is on the table for the next 5 months? Yeah I know. Seems like a stretch. But my model says it is in fact the most likely thing to happen.
Let's see who is right, common ignorance or my model.
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