On
a post July 1, 2013 I assumed there to be opportunity due to the recent bearish
stampede out of the precious metal miners which had driven the prices of many
miners down to levels that were extreme as measured by per cent (negative) deviation
from the mean – in this case a simple 30-week moving average.
The
table displayed was the output from a filter run at June 2013 month end that
screened a basket of precious metals producers as to their current per cent negative
distance from their respective 30-week simple moving averages. The selected
basket was sorted by the % deviation number and then divided into four probable
outcomes.
Low
Risk Recovery Selections: Lowest risk with moderate short term positive returns
Medium
Risk Recovery Selections: Low risk with fair short term positive returns.
High
Risk Recovery Selections: High risk with above market positive returns
Question
of Survival Selections: Very high risk with volatile returns.
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