Assume nothing! That has been my watch phrase for 2020 and in fact assuming anything and operating accordingly in such a bizarre dystopian year has generally been the sub-optimal path, to put it lightly. This was borne out once again as we went into the final two trading days of the year Thursday morning. At that point, I assumed that all the tricks up my sleeve in the way of that “one good trade” we always look for had been exhausted, at least until the New Year.
I wrote in Tuesday’s mid-week report, “If pressed for relatively fresher long plays, I’m leaning more towards precious metals and certain silver miners…” In this case my instincts were running in the right direction, but I also noted, “…these are also not showing much in the way of upside fireworks following the initial moves off the lows that began in early December.” Obviously, I spoke too soon.
Perhaps the Greek Goddess Theia was listening. Gatos Silver (GATO), which was holding squeaky tight along the 10-day moving average per my discussion in Tuesday’s report, shot higher in a silvery burst of FOMO-like propulsion on Wednesday morning. Not a move I would have assumed would transpire in the last two days of the year, but we’ve already covered that issue.
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