PM Stock Trades Portfolio
Mid Month Update.
As you know, I usually update the different portfolios at the end of each month, but for the benefit of our new members, and because the rally out of the January low has been so strong, I’ve decided to do a mid-month update for February. I’m just going to update the daily and weekly charts in most cases. You can see the monthly bar and quarterly line charts already updated at the end of January in the PM Stock Trades Portfolio for the long-term view.
Most of the PM stock indexes formed the October 2024 bullish falling wedge as their consolidation pattern, but many of the PM stocks have formed a triangle, in many cases, with a few bullish falling wedges or bullish expanding falling wedges as their October consolidation patterns.
Before we look at the individual PM stocks, let’s do a quick review of the HUI, as a proxy for the rest of the PM stock indexes, from the 2-hour chart to the monthly chart to see any changes that have occurred.
Let’s start with this 2-hour bar chart for the HUI, which shows its October 2024 bullish falling wedge with the January 2025 double bottom reversal pattern forming at the last reversal point low. After the double bottom backtest, the HUI rallied up to the top rail of the October falling wedge and found resistance on two attempts to break out. Upon breaking out above the top rail, the HUI formed the small blue expanding triangle as the backtest before moving higher.
In the Weekend Report, I mentioned that the HUI could be forming another small blue consolidation pattern, but there wasn’t enough evidence in place yet to know what type of consolidation pattern may form. With today’s price action, we can now see a possible rising flag forming, which, in a strong impulse move up, could be a very bullish setup. Today, the 4th reversal point was completed, so now we just need to see which direction the breakout occurs. Again, normally, in a strong impulse move up, these types of patterns generally break out to the upside.
Next is the daily bar combo chart, which goes back to the March 2024 double bottom low, where we were able to get positioned in the first round of buys. That rally lasted until the October 2024 high, where the blue bullish falling wedge formed, setting up the 2024 uptrend channel with the January 2025 double bottom low connecting the bottom trendline.
That micro rising flag on the 2-hour chart above has formed around the center dashed midline on several of the PM stock indexes, and as a standalone consolidation pattern on some of the other indexes. Note how the SIL finally broke out from its blue bull flag, with the breakout and backtest looking to be completed.