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It was a little ironic the other day, I’ll admit, when I recommended the BAA trade for a “$5 Roll” (since successful) and was chided by commentator “Po Pimp” for a past recommendation that had also at one point promised a permanent place in “big boy stock” stock land north of $5. That stock was AAU, if any attentive readers recall, and it only barely made it to $5.00 in late April of last year before stumbling and finally dropping to $2.00 by the doldrum period of last December.
I of course still owned AAU at the time of Po’s razzing, but hadn’t really studied the chart in a while. That challenge, however, had me take another look, and what I saw last week was a stock also breaking out of a consolidation zone, just as BAA had done. Look at the weekly to see how we were breaking (even last week, if you look at the shorter candle before the present one forming this week) from a congestion zone and from an intermediate term down-channel.
Last week’s promise confirmed today, when AAU surged over 15% on huge volume. I don’t even know what the news was that drove this rocket today, and it could even just be a result of pent up demand. One thing I do know is that this is happening more and more with the juniors, and I don’t expect it to stop very soon. The dollar remains under pressure, as well. I think we’ll get some continuation here, at least.
And maybe…. moooooore!
Go have a box wine tonight, on old Uncle Jake, it can’t hurt none. I also like CDE , AG, MVG and EXK here.
My best to you all.
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