I already gave you this idea a few weeks back, but I wanted to bring my favorite Japanese gold play (not really), Yamana Gold (AUY), back to your attention. As I mentioned in my last feature, this is one of the longest saucer-consolidation patterns I’ve seen forming in the gold sector since the March 2009 Recovery, and I think we are finally done consolidating and getting ready to launch with vigour (sic). Look at the weekly one more time:
Note that the real breakout is probably going to be somewhere above $14, and you might want to wait til you see that number. I already own some, however, and may add on strength tomorrow. As I would with any long term consolidation in a bull, I expect AUY to launch quite nicely once it breaks out of it’s saucer pattern here.
Today I cut back on some over-weighted positions, as announced in The PPT. That includes AAU, RGLD, DGP, some more NUGT and even silver star AG. I still have tonnes left in each of those names, btw.
Today I took advantage of Crazy Eddie “low, low, low” prices to nab some more UPS and TCK as well. UPS is perhaps one of the most solid companies in the world. It was on sale today so I added. I also opened a new position in Borg Warner (BWA) which I have been stalking from much higher numbers. I really like the auto supplier space. There’s tonnes of activity going on in the Private Equity market there as well.
Best to you all. I will be on the road again tomorrow but checking in.
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