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Krinsky: Time for a turnaround in basic materials

  • The basic materials sector has badly lagged the broader market YTD, and Miller Tabak's Jonathan Krinsky surmises investor rotation into the group is likely if the overall market rally is set to continue.
  • Krinsky's charts tell him the sector has been making higher lows since the 2009 bottom, but unlike the broad market and many other sectors, it has yet to clear its 2007-08 highs, giving the look of an ascending triangle - and the presumption of an upside resolution.
  • ETFs: XLB, XME, JUNR, PICK, MSXX, FMAT.
Comments (1)
  • thelittletaxguy
    , contributor
    Comments (5) | Send Message
     
    Maybe this should be a written article, as opposed to a comment to the writer, but allow me to proceed.
    I receive and read a multitude of newsletters touting that silver should see $100/oz, $150, $250 and set to soar,soon, sooner,etc. Whether it be shares in general, or as in this case, in senior miners, junior miners, baskets, etf's, or purchasing actual physical silver coins, bars and wafers, etc.,there are conflicting points of view on the subject , which I weigh , and on balance, make my decisions.
    Both amateurs as well as sophisticated "highly analytic" investors have commented on this subject. Probably upwards of 100 pieces have been written over the last 3-4 years citing manipulation, J.P. Morgan et al, and case after case being thrown out of court for various reasons. I won't say I have been "suckered-in", because I felt that each and every purchase was based on either fact or , technical analysis, or a point of view that I felt made sense and to which I agreed. Needless to say, as I accumulated 'the poor mans gold' in the form of physical silver, and then averaging down, and progressing to acquiring senior shares,, junior etf's etc.,
    It has reached a point where I now question ... why the writers of news letters or articles have not as yet " wiped the egg off their face" , or requested that someone else wipe it off for them.
    I would appreciate someone standing up and saying ,"you know, I've been wrong all along. We---you should have dumped your investment in these products yesterday, today or first thing tomorrow, and allow your money to work for you in other segments of the marketplace, wherein you might see a positive return and/or capital appreciation of your investment,
    Averaging down is a wonderful strategy, unless you 'down-it' into the basement and loose your investment entirely after you realize that $7,00/oz is no longer a bargain basement price but that you have an unproductive, negative return investment.
    My shoulders are hurting from carrying the physical silver kilo bars out of my local, North American renowned metals dealer, and I'm sad to say the only reason I'm not heading back there is because i would need a pallet and lift truck to carry the metal and barrels of tears that I have.
    The big boys made their money buying low and selling high, and I'm foolish enough to believe that this is not the time to liquidate and that I;m going down with the ship.
    Any "egg-wipers" still around ?
    15 Nov 2013, 03:43 PM Reply Like
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