Bookkeeping: Both Precious Metals Stocks Drop to 50 Day Moving Average, so Adding More

Well that was quick. Yesterday I mentioned I was increasing exposure to the 2 precious metal stocks [Bookkeeping: Adding to Precious Metals], as they fell to their 20 day moving averages

I am taking this opportunity to add a good amount of exposure to both Kinross Gold (KGC) and Silver Wheaton (SLW) - both charts are identical - stocks in solid moves up which have pulled back to a first level of support (20 day moving average). Both risk falling further to 50 day moving average where I would buy more.

Now, according to plan they both have quickly shed more value and dropped right near their 50 day moving averages, so I am adding another layer to both positions. So far it's been a textbook pullback - can they fall further? Certainly, as the hedge fund invasion into commodities has caused massive volatility, but the underlying trends have not changed and short of a new era of dollar strength, and equity market resurgance these should rebound well on the next market selloff.

I've added to Kinross Gold in the $23.30s, and Silver Wheaton in the $17.00s; the former is now a 3.0% position and the latter 2.8%.

Long both names in fund and personal account