Staying Focused on Silver and Gold

 | Feb 22, 2012 | 2:16 PM EST  | Comments
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Stock quotes in this article:

ag

,

aumn

,

aapl

,

ibm

There is no big rush for the exits but we aren't bouncing back as quickly as we have gotten used to. Big-caps such as Apple (AAPL) and IBM (IBM) are still holding up well and providing support, but small-caps are struggling. They aren't being sold aggressively, but the charts are deteriorating as momentum dries up.

Gold has turned up and is now leading, and I'm adding to some of the gold and silver miners I mentioned in my earlier post, especially First Majestic Silver Corp. (AG). One silver miner with a particular interesting story is Golden Minerals Co. (AUMN) and I'm slowly building that up. The company has a corporate presentation on its Web site with details of its operations.

I'm looking for the market to correct further so I'm in no rush to add to longs, but I'm trying to focus on sector rotation, which is why I'm writing about gold and silver today. I believe we will see a higher level of defensiveness emerge, and that will benefit the precious metals.

We'll see how this market closes today. The bulls have consistently done a good job of producing good closes that keep the bears at bay. If we close weakly, that may open the door for more aggressive selling.

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