Mmmmmmmmmm….. Deeee-licious!
Looks like our friend “Baby $HUI” — the Amex Gold Bugs Index is just about to pull back to our second line of resistance that I’d plotted out some week and a half back. If you recall, the chart looked like this:
In the above, we’d hit that magic $400 barrier and come back already to our first point of resistance. Well, as of late last week, we’ve come very close to that second line and will likely hit it sometime today (Update: We’ve hit it and then some at $341– next stop could be our 13 week MA at $337.30). Therefore, I think we need to keep our eyes open for a bounce here at least back to that first resistance level at $375. Here’s where we are today:
Because of the relative strength of this sector, I think it will continue to lead, and show it’s bull head before the rest of the market does (if in fact the rest of the market continues with its bullish ways). Short synopsis, this is your only confirmed bull in the market right now, with most names riding above their 200-day MA’s. Therefore, this is where you want to play for fun and profit, no matter with what specie you purchase your ice cream cones.
There are a couple of POS miners that have yet to truly participate in this rally, and that may be because they are POS, so take this next chart with a kiloton of salt. It’s the old dog, [[CDE]], which has dropped back down to attractive levels again, and is down over 5% as I type this. Keep a tight stop here, but I continue to think this old hag still has a chance to come close to her 200 day MA at close to $30 here. Here’s her weekly:
One last note — be cautioned as [[UUP]] is back above it’s 61.8% fibonacci line of $24.06 as of about 9:40 am this morning, which could spell at least temporary trouble for the markets in general. In the case of this PM bull, I believe it smells of opportunity. Best to you all.
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Update: Barron’s weekend pick and Jakepick (non-Jacksonian) [[NG]] showing her mettle, up almost 8% in a down market. I own shares, but will likely add to weaker names. [[RBY]] in particular looks good here. Word on the PPT is that it’s a possible [[GG]] takeover.
Update: @ 1:57 pm, $HUI is right on the trendline right now at 334, give or take. If UUP folds over, this could be an excellent purchasing opportunity. Keep a gimlet eye!
Update: Bot 1k more [[AGQ]] @ $44.01.
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Happy (belated) Birthday to your better half…
Chanci said something about a funny post about the trip to Disney. I looked for it but i think i have a better chance of figuring out the phone lines in Jaipur. Can you post the link?
grassyass
I don’t think I actually posted something about Disney… it may have been a comment. It was before I was a blogger here, remember.
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Note most recent update: $HUI is right on it’s trendline @ $333.50-ish here and if it can turn up here might make for our ideal opp.
Especially watch in conjunction with a UUP foldover from 24.32.
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DMG, it wasn’t a blog, just posts, but they really were funny if you have ever had to take the kids to Disney World. It was about him knowing someday it was going to happen, the kids cornering and hog tying him, there being no better place to separate a man from his money, wanting nothing more than a good strong drink, trying to keep in touch with IBC on the blackberry while there, etc.
It struck me as hilarious because I could so picture it.
In regards to this thread, I bought RBY on that same buyout rumour (as well as Canplats Resources as another possible buyout play). Don’t have any NG, but have so many miners I can’t justify buying it right now. Probably be the absolute ONE I should have bought.
On your water stock reply, Jake, thank you. I have been looking at your two picks, but CWCO just seems like it has such an edge with it’s salt water desalination business and I like HOO because it turns waste water into drinkable water in several different countries. So that’s why I am looking at those.
Yogi, you mentioned uranium on that previous thread and I am wondering which, if any, is your favorite uranium company? I have URRE, used to have Denison Mines, and have been looking at UEC based on Alpha’s post. I saw where “sleepynaptime” has made quite a good profit on that one buying when Alpha first rec’d it.
Just bot one k more AGQ @ $44.01 … “couldn’t resist,” at this massive discount.
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Jake,
Went long TBT today, I like this pullback.
Jake- you have turned into such a solid blogger. Super good job.
chanci- hope your summer is going well. we sure miss you– you’re an awesome
trader and a great buddy. hurry back when you can.
Too much dead weight in that goldbug index imo. AUY EGO GG HMY okay, the rest, meh.
FYI, planned ETF for junior PM miners.
http://www.indexuniverse.com/sections/newsinfocus/5969-van-eck-files-for-junior-miners-etf.html
Thanks for the compliment Lindsay, be sure to take a look at some of these bargains tomorrow (next post up).
Sleepy — I will look forward to seeing that. Hope it’s liquid, and I bet it will be.
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Caveman, I like TBT here too. Might boost my sold calls.
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