I was rather hoping today we'd see a breakout above $25 confirming all the bullishness about miners floating around on the boards and in the precious metal media. However, I suppose that the reversal off $25 on Friday was the sign it wasn't going to happen...The Swiss Franc tie up to the Euro didn't help and the strength that came into the dollar really put AG on the rocks - off 4%+. Did cover some $25 calls at the low today, held on to some $20 puts for some very limited downside protection. I'd like to see this thing vault real soon just to see all the swing players scrambling, but I suspect the dollar safe haven strength will rule the day for a while...
It has been the pattern as of late, any deplore now should be viewed as a buying opportunity. We should have already blown away the highs, it won't be long, it will just take a couple of good trading days to see new highs.
I'm looking for First Majestic to hit $100 per share once silver hits 100 an ounce. You'll be fine buying anywhere in these levels. Today AG is down 5%, probably not a bad time to buy. We are entering the strong season for metals, AG might not pull back much.
My recommendation would be to buy an hold. We don't buy AG because of what silver is doing right now, we buy because of what AG is going to do once silver rockets. The only downside I can think of is AG getting dragged down if the general stock market drops. I'm not a financial advisor, I just play one on the internet.