U.S. Gold (NYSE:UXG) continues to be one of the best stocks in the overall market completely bucking the previous correction. Please read my previous post from last week where I highlight the 4 major reasons this stock is moving and why I believe it will continue higher. Click here for previous post.
We will have pullbacks but the next target for UXG is pre crash highs of $7. UXG is leading the precious metals market as it is at the top of the list in performance over the past 6 months.
Notice two of our recommendations are up there General Moly and U.S. Gold. New Gold would be up there as well with a 90 % gain but for some reason bigcharts doesn’t classify it as a gold stock. Taseko is up close to 200% gain for the past year.
Since 2001 I have used technical analysis and specifically relative strength to focus on tomorrow’s leaders in the mining sector. Having a discipline and following strength in a sector that is filled with shameless promotion is key to making gains. Fundamentals analysis alone will not achieve the same investment return.
Here is a chart from our recommendation point of 6/2/09.
Subscribers have close to a 90% gain and I appreciate all the subscribers who waited patiently through the correction where we gave back a 45% gain. I believe in holding on to winners. Stocks that I recommend have potential to make huge gains, but one has to patient as stocks correct and create another base before blasting into new high territory as in the case of UXG.
Disclosure: Long UXG