Stocks that make 52-week highs go on to outperform their peers for the next 6 months… And the same goes for sectors. Gold is leading the resource shares, and precious metal shares are ripping higher ahead of every other sector.
As our readers know, these shares are coming out of a brutal bear market, and even with the gains they’ve seen thus far, they aren’t even at the levels last seen at the bottom of the early 2000s bear market, which went on to become the greatest bull market this sector has seen to date.
The setup here is a once-in-career-opportunity, and for many, once-in-a-lifetime. We are sticking with a few core stocks and will introduce new ones in the coming weeks.
Many readers have emailed us asking if it’s too late… Our answer: this is still very early in what we believe will be an epic run higher. We suggest stop losses on all of your trades for the natural resource space.
A 33% trailing stop loss may be optimal for this volatile sector. We want to make sure we always lock in gains, and limit any that turn south. However, this is a volatile sector that oftentimes has violent moves that are reversed with equal strength from day to day.
If you need help setting up a trailing stop, any online broker can help walk you through this, or if you have an advisor, simply call them up and make the request.