My 2009 gold target has been hit. From here on in I will be posting less and less. This is not the time to try and trade. I don't. From now on I will advise as to what I think is the next big move to allow you to "shift' your gold positions as apposed to trading them.
I've said for months GSS was my big pick. Today after a 12% gain closing at 4.20 I'd hope you understand why. TRE went from the 3 range to 3.80 range. IAG went from what I originally bought it at, at 6 to 20. These 3 continue to be my big players. They will cease to be when I tell you otherwise. Also look into Golden Predator (GPD.V or GPRXF) First Majestic silver (FR.TO or FRMSF) and Franco Nevada (FNV.TO or FNNVF) If you want to know what my whole picks list is you can check Motley Fool for the name Alchemy Financial. on "My Caps". For the record, out of almost 70,000 people, I'm doing better than 90% of them so far. (that will change to more like 97% within the next year, this I am certain of.)
Good luck, stay long and try not to panic. 1700, 3500, and 5000 are certain. You can bet your life on it... I do...
-J
Tuesday, December 1, 2009
Monday, November 23, 2009
Regarding my recent absence
I haven't said much on this site recently and for good reason. When your trading you buy something that you think is about to go up, and sell what you think is going to go down. I've told you to buy for months. I have rarely told you to sell... Can you read between the lines?
I will continue to be absent. This environment is unlike what I expected but is what I should have anticipated. I will give you my thoughts for now and go into detail about them in the next few days coming.
I have told you why to buy IAG for quite some time now. I continue to think so. Today as it surpasses $20 do you still doubt me?
GSS will break the 4 mark onward to 5. This I am 100% sure of. Having patience is grueling but remember this... it is easier for a producing gold company to turn profit than for a explorer to get into production. Soon profit in $'s will be obsolete. Investors will focus only upon proven gold and a history of the ability to mine it. This will continue to be a top 3 pick of mine until you realize why.
Newmont has always been my favorite major miner. they have proven to all the nay-sayers why recently... this will continue. I expect $100 in less than 3 years.
First Majestic... (either FR.To on Toronto or FRMSF on the pink sheets) is a remarkable silver company. Silver will due dramatic things soon. There is too much to right here. Call or email me and I will explain why.
This is also true for FNNVF or FNV.TO Franco Nevada.
GPRXF or GDP.V Golden Predator which is for all intensive purposes a penny stock, at less than $.70 a share, but right now they have $10 million in cash... again call or email and I'll explain there situation.
My arthritis is acting up so ill post when I can, if I can. Call or email for any questions.
Remember 1200-1250 buy the end of 2009? I've said it for 6 months! It's already here.
These are the days that separate the mice from the men my friends...
-J
I will continue to be absent. This environment is unlike what I expected but is what I should have anticipated. I will give you my thoughts for now and go into detail about them in the next few days coming.
I have told you why to buy IAG for quite some time now. I continue to think so. Today as it surpasses $20 do you still doubt me?
GSS will break the 4 mark onward to 5. This I am 100% sure of. Having patience is grueling but remember this... it is easier for a producing gold company to turn profit than for a explorer to get into production. Soon profit in $'s will be obsolete. Investors will focus only upon proven gold and a history of the ability to mine it. This will continue to be a top 3 pick of mine until you realize why.
Newmont has always been my favorite major miner. they have proven to all the nay-sayers why recently... this will continue. I expect $100 in less than 3 years.
First Majestic... (either FR.To on Toronto or FRMSF on the pink sheets) is a remarkable silver company. Silver will due dramatic things soon. There is too much to right here. Call or email me and I will explain why.
This is also true for FNNVF or FNV.TO Franco Nevada.
GPRXF or GDP.V Golden Predator which is for all intensive purposes a penny stock, at less than $.70 a share, but right now they have $10 million in cash... again call or email and I'll explain there situation.
My arthritis is acting up so ill post when I can, if I can. Call or email for any questions.
Remember 1200-1250 buy the end of 2009? I've said it for 6 months! It's already here.
These are the days that separate the mice from the men my friends...
-J
Monday, November 9, 2009
Goldman Sachs, brokerage firm of choice by The Almighty
What?!! Goldman's CEO claims that he believes there doing "God's Work"? Yeah? So did the Son of Sam. Leave it to the biggest most currupt firm in the world to elevate themselves to "Apostle" status. Get over yourself! Your an investment banking firm! You fuck people over daily! There is no way in hell your doing "God's Work" unless he just called asking you to buy him 35,000 shares of Yahoo. (And if he did, what kinda margin requirements are given to the alpha and the omega?)
Gold Is God's money. Goldman is the biggest gold short. Mark my words, if you short God's money and go around mouthing off that your doing his work by doing so, you will have your day of reckoning.
-J
Gold Is God's money. Goldman is the biggest gold short. Mark my words, if you short God's money and go around mouthing off that your doing his work by doing so, you will have your day of reckoning.
-J
Wednesday, November 4, 2009
Told ya...
There are still 2 weeks left on my time line and gold prices have hit 1096; a whopping 4 dollars away from my 1100 target.
1200-1250 or higher by the end of the year. Write it down. Do you understand that this is going to happen, or are you still letting Robert Prechtor convince you Gold is going to $250?
I'm in the process of changing my title from "Financial Manager" to "Psychic". I think I'll have more look convincing people what's going to happen by telling them "The neighbors dog told me the market was going to crash" than by giving them any sort of actual logical and fundamental reasons why.
1100 is here, 1200 is sooner than you think. Trust me, it says it right here on the crystal ball.
-J
1200-1250 or higher by the end of the year. Write it down. Do you understand that this is going to happen, or are you still letting Robert Prechtor convince you Gold is going to $250?
I'm in the process of changing my title from "Financial Manager" to "Psychic". I think I'll have more look convincing people what's going to happen by telling them "The neighbors dog told me the market was going to crash" than by giving them any sort of actual logical and fundamental reasons why.
1100 is here, 1200 is sooner than you think. Trust me, it says it right here on the crystal ball.
-J
Monday, November 2, 2009
Anyone paying attention?
The break up I spoke about 1 week ago has occurred. Gold is now less than $10 from its high, and $35 dollars from the 1100 target that I wrote would most likely occur in 3 weeks. The top at 1070 will be taken out soon. 1100 will follow. This is no longer an opinion or a hunch but a certainty. The dollar is dead. The dollar has been dead. The fact that America in general has yet to smell it's rotting corpse, does not make it any less dead. Those of you in the gold community know this to be true.
I can not stress to anyone in the form of words how important this is. I want you to remember that I do this for free as a service, because I pray that maybe at least a handful of people might listen to me. Those who fiddle around trading Google and Microsoft will miss an extraordinary move in the gold market, and there wisdom will tell them not to buy because it's too late, they missed it. These same people will come crawling back to buy gold at prices double what they are now. THIS CAN ALL BE AVOIDED!!! Protect yourself, your finances and your family from the ultimate government tax; inflation.
I will help anybody who asks. This is so crucial now if you have any questions as to this or need help as to how to invest in gold you can email me at jmmergott@gmail.com or call me at 908 722 8636. That is my home phone number. That is how seriously important this now is.
Get your finances in order now. By Jim Sinclair's count, 1 week to go, by mine, time is and has been up.
-Jonathan Mergott
I can not stress to anyone in the form of words how important this is. I want you to remember that I do this for free as a service, because I pray that maybe at least a handful of people might listen to me. Those who fiddle around trading Google and Microsoft will miss an extraordinary move in the gold market, and there wisdom will tell them not to buy because it's too late, they missed it. These same people will come crawling back to buy gold at prices double what they are now. THIS CAN ALL BE AVOIDED!!! Protect yourself, your finances and your family from the ultimate government tax; inflation.
I will help anybody who asks. This is so crucial now if you have any questions as to this or need help as to how to invest in gold you can email me at jmmergott@gmail.com or call me at 908 722 8636. That is my home phone number. That is how seriously important this now is.
Get your finances in order now. By Jim Sinclair's count, 1 week to go, by mine, time is and has been up.
-Jonathan Mergott
Wednesday, October 21, 2009
Gold: 1100 in 3 weeks?
With oil hitting $82, it makes my year end prediction of $90 seem conservative. Nevertheless it confirms the breakout in gold, as is other commodities such as copper which is now over $3 again for the first time since this time last year. $90 on oil will be reached sooner than later at which time I will probably up the ante. For now we'll stay there. The Euro is now over 1.50 a whole $.08 from my year end target for that at 1.58. If the euro was to exceed my target I will not amend it because frankly, it doesn't matter. You either own gold, or you're everyone else.
$1200 is the target on gold. $1100 will be reached from what I believe will be 2 to 3 weeks. The reason for this is the dollar beginning to plummet faster than an "organized decline". These quick violent rallies will be short lived and are classic examples of a bear market. It has a few minor support points, but for the most part will be 74 in a very short period of time. Aside from that, has the gold market seemed rather quite to you recently? Just not as much buying action as you would think on some days? Just consolidating in between 1045 and 1070, kinda like it was as it broke out from 950 six weeks ago? And then again at 1000 in early October? Not to mention the lack of caring one way or the other that the miners have displayed recently, same as they were when this all started. Don't short a quite market. It's getting ready to move big again. The fact of the matter is, most people buying and trading gold, don't even know why there doing it! Ask them! The usual answer is "My financial adviser said I needed to be more diversified." Or "Cramer told me to buy Agnico Eagle. I don't know anything about the company but..." For them, it's just the same game with different players. These people have the attention span of a gnat, when gold stops performing, there on to something else. I can't tell you how many people I talk to who shake there head saying "Your right your right! Gold's gonna go crazy!" right up until the point where it stops for a few days and then there selling there gold shares for Yahoo. Frustrating, yes, but gold will always go crazy when everybody is frustrated with it, and when they least expect it.
Probably the best in technical analysis, Dan Norcini pointed out something a few days ago that I had also been telling people about. Gold has consolidated within a $25 range while the RSI has fallen into a downtrend, just as it did throughout September. When the downtrend was broken gold launched $40 upwards. When this trend is broken, gold will skyrocket sending it to $1100 easily. The first downtrend in the RSI was broken almost exactly 1 month after it began. The current downtrend has been in play for about 2 weeks. Very quickly people have become accustom to gold above $1000, $1100 will secure it's move higher and further the "ney-sayers" to continue their theory on the gold "bubble". These same people who reject the validity of a higher move in gold at $1000 will be buying like hell at $2000, they just don't know it yet.
The gears of monetary destruction grind faster and faster. Gains that took gold years to accomplish before will soon take weeks. Those that constantly look for a bubble where there is none will inadvertently create it themselves as they buy gold at astronomical prices. What was a "bad investment" at $1000 will be the only investment at $2000. The smart ones among us won't ask what the price of gold is, because we know that Gold is the price.
By year end it is as follows:
Gold=$1200/oz
Oil=$90/barrel
Euro=1.58
USD index= 72
If your buying Microsoft today because there earnings were so good and Windows 7 is going to be awesome... you've missed the point.
-Jonathan M. Mergott
Alchemy Financial Management
$1200 is the target on gold. $1100 will be reached from what I believe will be 2 to 3 weeks. The reason for this is the dollar beginning to plummet faster than an "organized decline". These quick violent rallies will be short lived and are classic examples of a bear market. It has a few minor support points, but for the most part will be 74 in a very short period of time. Aside from that, has the gold market seemed rather quite to you recently? Just not as much buying action as you would think on some days? Just consolidating in between 1045 and 1070, kinda like it was as it broke out from 950 six weeks ago? And then again at 1000 in early October? Not to mention the lack of caring one way or the other that the miners have displayed recently, same as they were when this all started. Don't short a quite market. It's getting ready to move big again. The fact of the matter is, most people buying and trading gold, don't even know why there doing it! Ask them! The usual answer is "My financial adviser said I needed to be more diversified." Or "Cramer told me to buy Agnico Eagle. I don't know anything about the company but..." For them, it's just the same game with different players. These people have the attention span of a gnat, when gold stops performing, there on to something else. I can't tell you how many people I talk to who shake there head saying "Your right your right! Gold's gonna go crazy!" right up until the point where it stops for a few days and then there selling there gold shares for Yahoo. Frustrating, yes, but gold will always go crazy when everybody is frustrated with it, and when they least expect it.
Probably the best in technical analysis, Dan Norcini pointed out something a few days ago that I had also been telling people about. Gold has consolidated within a $25 range while the RSI has fallen into a downtrend, just as it did throughout September. When the downtrend was broken gold launched $40 upwards. When this trend is broken, gold will skyrocket sending it to $1100 easily. The first downtrend in the RSI was broken almost exactly 1 month after it began. The current downtrend has been in play for about 2 weeks. Very quickly people have become accustom to gold above $1000, $1100 will secure it's move higher and further the "ney-sayers" to continue their theory on the gold "bubble". These same people who reject the validity of a higher move in gold at $1000 will be buying like hell at $2000, they just don't know it yet.
The gears of monetary destruction grind faster and faster. Gains that took gold years to accomplish before will soon take weeks. Those that constantly look for a bubble where there is none will inadvertently create it themselves as they buy gold at astronomical prices. What was a "bad investment" at $1000 will be the only investment at $2000. The smart ones among us won't ask what the price of gold is, because we know that Gold is the price.
By year end it is as follows:
Gold=$1200/oz
Oil=$90/barrel
Euro=1.58
USD index= 72
If your buying Microsoft today because there earnings were so good and Windows 7 is going to be awesome... you've missed the point.
-Jonathan M. Mergott
Alchemy Financial Management
Thursday, October 15, 2009
Change you can be afraid of...
Just for the record I figured I'd post the weekly chart of the DJIA with the obvious downtrend from where it closed at over 14,000 some 2 years ago. We are now officially half way from the top and half way from the bottom. Hooray. As I posted yesterday, the Dow has done absolutely nothing for 10 years but lose to inflation. Now I would like to tell you the reality of just how badly it has. In the 10 years since the Dow first hit 10,000 The US dollar has dropped by 25%. Adjusted for that the DJIA is at a pathetic 7,537. Barely 1,000 off the low. Way too go! (and they call gold a lousy investment! Which by the way is up 350% since the end of Oct 1999.... yeah....) This information on the Dow I would like to say is from the website www.zerohedge.com which If you have never been there has some more than interesting stuff, and I do recommend it. (To quote someone from that website, "I want my 10 years back")
As most people who know me can tell you I try not to concern myself with the DJIA so onward to the point.
There is a hurricane brewing and it's name is "monetary policy". It's coming soon and faster than I originally thought. I have said time and time again my predictions for the rest of 2009. I will state them again.
Gold=1200/oz
Oil=90/barrel
Euro V Dollar =1.58-1.60
US$ index= .72 or lower
I'm starting to think I'm being way too conservative. Especially on the dollar, and possibly on gold and oil too.
Everything comes down too the dollar, and I don't just mean market wise either. Gold is the leading indicator, whether Mark Haines wants to admit it or not. It is the lone element right now screaming to us that inflation is coming. Now, either it's predicting things to come, or it's a fluke and all the gold bugs are crazy. Today the move higher in gold was from what I believe confirmed by a breakout of oil from it's $75 resistance point. As the dollar continues to decline and oil production falls from the obvious peak we have hit, things will only go up from here. The crowd that says oil's rise is do to economic recovery and how $65 a barrel is good for the consumer and $72 a barrel confirms the markets move higher/economic recovery, will now look at things from a new perspective as oil reaches dangerously close to triple digits once again. They will walk on egg shells as they realize that $90 barrel of oil is way ahead of any recovery in the economy and with an unemployment rate of 10% , not at all good for the consumer. Today there was an article on AOL.com about "Sticker shock" at the grocery store. We are beginning to feel it and it only gets worse from here.
This is all centered around the dollar. Oil and other commodities will begin to move higher and everyday costs will go up. Jim Rogers 20 year bull market in commodities is dead on. Gold and oil will continue to rise and the dollar will continue to go down. And then it will happen. The dollar will have the floor pulled out from under it. The only reason that a weaker dollar is "good" for the market as far as anyone is concerned is because they know there will be a recovery and when there is, they know that the dollar will reverse and move higher. The day is approaching soon when it will begin to dawn on people that that may not happen. That the dollar has fallen a little too far a little too fast. Markets are the leading indicators. The people on Wall St see it before the people on Main St. This will not be the case this time around. It will be universal.
I think gold is getting ready for another big move to the upside soon. (And when I say soon I mean a few weeks at the most) One that will take out the 1080 resistance point people have been talking about and possibly beyond 1100 too. The powers that be will not let the dollar fall too drastically as most people including myself predicted it would as it breaks through .76. The consensus is that a organized decline in the dollar is ok, so for now an organized decline is what they will get, on it's way to .74 which gold has already factored in. (Far too organized if your paying attention.)
Stay long Gold and Oil, and remember, this is what we voted for.
-Jonathan M. Mergott
Alchemy Financial Management
Wednesday, October 14, 2009
Dow 10,000
Wow. Look at how far we have come. From 1999-2009 the DJIA has managed to do nothing. Wait, If you bought into the DJIA at 10,000 10 years ago, your money quantity is now the same, It's buying power however... you would have been better off in a savings account.
Everyone is always playing yesterday's game.
Everyone is always playing yesterday's game.
Tuesday, October 13, 2009
An explanation of the misinformation on inflation
An explanation of the misinformation on inflation
inflation is a money supply inclination (simply put)
inclination leads to devaluation (of currency)
devaluation leads to isolation (of the country and it's debt)
isolation leads to desperation (of government to borrow money)
desperation leads to starvation (of it's citizens)
starvation leads to totalitarian nation (anyone that promises food)
totalitarian nation leads to confiscation ( guns, gold & freedom)
confiscation leads to desolation (death of the population)
desolation leads to condemnation (who's fault is this?)
condemnation leads to extermination (of all that are to blame)
Therefore, inflation leads to the extermination of your nation.
-J
inflation is a money supply inclination (simply put)
inclination leads to devaluation (of currency)
devaluation leads to isolation (of the country and it's debt)
isolation leads to desperation (of government to borrow money)
desperation leads to starvation (of it's citizens)
starvation leads to totalitarian nation (anyone that promises food)
totalitarian nation leads to confiscation ( guns, gold & freedom)
confiscation leads to desolation (death of the population)
desolation leads to condemnation (who's fault is this?)
condemnation leads to extermination (of all that are to blame)
Therefore, inflation leads to the extermination of your nation.
-J
Round 2 begins.
The Dollar/Dow negative association is starting to crumble. Martin Armstrong said the top will be reached in Sept, and I have a feeling he's right. Today the dollar declines while commodities (gold) is up and the Dow follows the dollar. The idea that a weaker currency is good for anything is now or soon will be shattered. The fact remains no civilization in the history of mankind has ever benefited from a devaluing currency and we will be no exception. When the USD index breaks below 75.80 (where there has been some questionable support from where I will allude to but not admit, lets just say it's TWSAU: Those who Stand Against Us) 74 will come in a mighty hurry.
The government has spent too much time and effort capping gold. They have failed. There only hope now is to "prop" the dollar, (which will intern cap gold, a bit but not much) This will fail too. The government cannot create or change a trend in a free market, they can only prolong the inevitable trend, and eventually always fail.
74 will change the tide. Jim Sinclair said yesterday 71.50 will be a turning point that will occur when the snow falls on the East Coast. As always he will be proven right.
The gears of monetary destruction turn faster and faster.
-J
The government has spent too much time and effort capping gold. They have failed. There only hope now is to "prop" the dollar, (which will intern cap gold, a bit but not much) This will fail too. The government cannot create or change a trend in a free market, they can only prolong the inevitable trend, and eventually always fail.
74 will change the tide. Jim Sinclair said yesterday 71.50 will be a turning point that will occur when the snow falls on the East Coast. As always he will be proven right.
The gears of monetary destruction turn faster and faster.
-J
Friday, October 9, 2009
More on gold and GSS
I'm sure it's been as exciting and hectic for just about everyone in the gold business as it has been for me these last 6 weeks or so, so I hope no one blames me for not posting recently. Besides that, if I had the advice would be simple: Hold. This is not worth missing the boat over. As Dan Norcini said yesterday at www.jsmineset.com there is an overwhelming enough people who are or are advising clients to wait to jump into gold until it pulls back to 1020, to make me think they will not get it. 1032 will be the best they will get, if they get anything at all.
As I posted a few days ago about the possibility of GSS being bought out most logically by Gold Fields (GFI), there is more going on there than just hoping for a buyout. GSS has exploded from a nearly month long pennant it created on this last run up by gold. In the process it rejected a new high and formed a double top at 3.70. its now consolidating nicely just under that in the mid 3.50's. A breakout is eminent. Although resistance in that area over top is sporadic ranging from 3.83 to 3.93 and finally onto the low 4's, there is much of it, and a big move in gold will blow it out of the 3 region on such a pattern. After such a long way up for gold so far, is there really steam left? Yes. 1050 was a goal that was accomplished and disrespected as gold moved onward to top out at 1060. It's next point is 1080 and onward to 1100. (as I've said over and over, 1200 by the end of the year...doesn't seem so "outlandish" anymore huh)
It's all about the dollar. The US Dollar Index has been playing on the brink of a significant break down from 76. (It almost accomplished this yesterday which would have been disastrous with the 12 billion dollar 30yr bond auction. Why would anyone give the government there money for 30yrs risking a dollar collapse if they can't keep it from collapsing for the next 30 min?) A breach below 76 will spell out a significant move downward for the dollar, possibly to 74 before finding any real support, from a technical perspective. It would also spell out a higher move in gold that Norcini said will take out 1100. (and he usually understates it).
A significant breakout in GSS will happen in less than 2 weeks. (Let's not forget that Buyout possibility) This move can very well send it to 4, so in short its my number one play for the next few trading days and it should be yours too.
That's why I'm all in GSS.
Don't trade your gold, shift. When GSS breaks up we sell and buy something else. Keep your eyes on GG and IAG.
-J
As I posted a few days ago about the possibility of GSS being bought out most logically by Gold Fields (GFI), there is more going on there than just hoping for a buyout. GSS has exploded from a nearly month long pennant it created on this last run up by gold. In the process it rejected a new high and formed a double top at 3.70. its now consolidating nicely just under that in the mid 3.50's. A breakout is eminent. Although resistance in that area over top is sporadic ranging from 3.83 to 3.93 and finally onto the low 4's, there is much of it, and a big move in gold will blow it out of the 3 region on such a pattern. After such a long way up for gold so far, is there really steam left? Yes. 1050 was a goal that was accomplished and disrespected as gold moved onward to top out at 1060. It's next point is 1080 and onward to 1100. (as I've said over and over, 1200 by the end of the year...doesn't seem so "outlandish" anymore huh)
It's all about the dollar. The US Dollar Index has been playing on the brink of a significant break down from 76. (It almost accomplished this yesterday which would have been disastrous with the 12 billion dollar 30yr bond auction. Why would anyone give the government there money for 30yrs risking a dollar collapse if they can't keep it from collapsing for the next 30 min?) A breach below 76 will spell out a significant move downward for the dollar, possibly to 74 before finding any real support, from a technical perspective. It would also spell out a higher move in gold that Norcini said will take out 1100. (and he usually understates it).
A significant breakout in GSS will happen in less than 2 weeks. (Let's not forget that Buyout possibility) This move can very well send it to 4, so in short its my number one play for the next few trading days and it should be yours too.
That's why I'm all in GSS.
Don't trade your gold, shift. When GSS breaks up we sell and buy something else. Keep your eyes on GG and IAG.
-J
Monday, October 5, 2009
All in on Golden Star
Action in Golden Star Resources has been odd all last week, ending on a particular note at 30 sec after the market closed somebody buying 65,000 shares for a 3 cent premium over the asking price. This was not the only occurrence as someone did the same thing Thursday too, only that was 35,000. Fridays after market did 300,000 shares while majority of the gold sectors after market volume was around 15,000. There was one other gold stock that had anywhere near that, Goldfields (GFI) at 340,000. Whats interesting about this is that Golden Star has only two operations both in Ghana. Goldfields has multiple mines including one that is a 70-20 joint venture with IAG, but the two sole owned mines for GFI just happen to be within spitting distance of GSS's... hmm. GSS's performance today is honestly pathetic, but being that if a buyout was going to happen it would have today may explain that the market is disappointed that it hasn't as I know I am far from the only one who came to this conclusion.
In short The gold miners are overdue for some consolidation, and with gold prices holding firmly at over 1000 would make this an appropriate time. Sure there are plenty of theories on buyouts and most won't be correct, I will maintain that GSS looks as good as ever for a major miner to purchase very soon. Goldfields would be the most logical, but of course I keep an open mind.
Just thought I'd tell you what I've been seeing and how my thinking is on the subject, I'll never leave you out on what I think is a good call.
-J
P.S. oh yeah and other than a dismal 300 shares of TRE I've been holding for months, I'm all in on GSS. One way or another somethings gonna happen to it or the gold market and at 3.20 I like it and expect at least a run back to 3.50 or to the high at 3.71.
In short The gold miners are overdue for some consolidation, and with gold prices holding firmly at over 1000 would make this an appropriate time. Sure there are plenty of theories on buyouts and most won't be correct, I will maintain that GSS looks as good as ever for a major miner to purchase very soon. Goldfields would be the most logical, but of course I keep an open mind.
Just thought I'd tell you what I've been seeing and how my thinking is on the subject, I'll never leave you out on what I think is a good call.
-J
P.S. oh yeah and other than a dismal 300 shares of TRE I've been holding for months, I'm all in on GSS. One way or another somethings gonna happen to it or the gold market and at 3.20 I like it and expect at least a run back to 3.50 or to the high at 3.71.
Monday, September 21, 2009
Barrick Gold=Sacrificial Lamb
Barrick Gold Corporation (or as I prefer to call, them Fuck-Shit gold corp, as that is the literal translation of it.) is the biggest gold miner in the world. I generally never talk about them and for good reason. Barrick has hedged or sold future production for years as gold prices have skyrocketed. They still have contracts to sell at $350/oz. (Mining costs are about $600/oz.) Essentially this is the situation with this company: They are not a gold miner, at best they are a bankrupt financial institution, at worst a group of drunken sailors gambling with the shareholders money.
The biggest miner in the sector does not believe gold prices are going up, so they sell there future production away for pennies. What kind of message do you think that sends to people about gold? (Not to mention there 2009 oil prices were hedged last year at $100/barrel, which makes no sense whatsoever. The common thread between the two being a declining dollar so if oil goes up, what do you think will happen to gold, or for that matter all commodities? Selling there profit short, buying there cost at the top, diluting the company to cover the difference...there's value for the shareholders...) Now as gold reaches prices higher than ever, Barrick has no choice, they have announced they will eliminate there hedge book...again...then they announced really it will only be some of it, because in reality they can't afford to. Their plan to accomplish this is to dilute the company some more, actually by 10% so that's another 80 million shares issued at 36 so that's almost 3 billion dollars, that should cover the hedge book right? Not even close. Barely 30% in fact. Another point to bring up, where will they get the gold? They won't. They will pay there hedged contracts market price for gold in cash. Cute trick huh? Pay for gold, and get paper.
Ladies and gentlemen, this is what happens when you go to bed with the government (Goldman Sachs/ J.P Morgan) Barrick, being the gold production monster it is has for years now provided Goldman and Morgan with the gold they sell to cap prices from going too high. Now they will pay for it dearly and no one will shed a tear. When the shareholders in Barrick realize just how bad this mess is, they will revolt, abandoning the stock all together leaving it open for attack by the shorts. As Jim Willie so brilliantly put it "How many decades of profits will be lost due to there reckless hedge book?" Gambling. Unsuccessfully too. Barrick Gold will fall. Hard. 7.2 million ounces of gold production a year will be in jeopardy, and the largest gold miner in the world (who never believed in it to begin with) will ironically become the sacrificial lamb that sends gold to 1200 and beyond. There has constantly been false reports about a merger between Barrick and Newmont mining. They are always discredited. Barrick wants Newmont's gold, scratch that NEEDS their gold, Newmont wants Barricks operations, but neither one of them will ever agree with each other because of there "policies". Simply put Newmont has never hedged. That will pay off for them soon.
I have a point of writing this of course, which I will now divulge. Newmont mining sold senior notes and has incorporated some debt recently to raise cash. A few monthes ago, Newmont bought back nearly 1/5 million shares outstanding on the company bringing it from 650 million to 465 million, a small tally for a monster gold miner like Newmont, being that Barrick has 2x that. (I will post a link to this article below) Needless to say, Newmont has some room to run in the Shares outstanding field. Lets not forget that the biggest un-hedged gold miner is probably making some good money on gold's recent climb. (Are you starting to see where I'm going with this?)
When the public finds out about the disaster that is Barrick, share prices will plummet. Under 20 or worse possibly. At which time, for a combination of cash and stock, the second largest gold miner will buy out the first, bringing Newmont Mining's annual production to over 13 million ounces a year, miles away from the next closest competitor, Anglo Ashanti at 5 million.
Now, I always say never trty and plan a take over, cause you can be assuered if you do that it won't happen. I thought for times that IAG would get bought when it was still 7-8, I thought Newmont might buy Yamana out after it sold 3 mines leaving it fairly tempting. Agnico Eagle has tripled there credit line while IAG prepares to open a monster gold mine less that 5 miles from there Flagship LaRonde... hmm. All are suspicions, educated guesses. If Newmont is able to act quick enough there will be no guessing about it. They will NOT miss their opportunity to bring them to number 1. This "theory" I am almost 100% about. We'll say 92% for now. Another prediction for the wall.
3-6 month time line predictions:
Gold will trade at 1250
Oil will trade at 90 or better
The Euro will reach close to 1.60 conversion rate
The dollar will reach .7200
Newmont mining will buy Barrick Gold.
Pay attention. This could be beyond huge...
-J
Barrick Gold, ripe for the bear Raid
http://finance.yahoo.com/news/Newmont-Mining-gets-nearly-apf-417199584.html?x=0&.v=1
The biggest miner in the sector does not believe gold prices are going up, so they sell there future production away for pennies. What kind of message do you think that sends to people about gold? (Not to mention there 2009 oil prices were hedged last year at $100/barrel, which makes no sense whatsoever. The common thread between the two being a declining dollar so if oil goes up, what do you think will happen to gold, or for that matter all commodities? Selling there profit short, buying there cost at the top, diluting the company to cover the difference...there's value for the shareholders...) Now as gold reaches prices higher than ever, Barrick has no choice, they have announced they will eliminate there hedge book...again...then they announced really it will only be some of it, because in reality they can't afford to. Their plan to accomplish this is to dilute the company some more, actually by 10% so that's another 80 million shares issued at 36 so that's almost 3 billion dollars, that should cover the hedge book right? Not even close. Barely 30% in fact. Another point to bring up, where will they get the gold? They won't. They will pay there hedged contracts market price for gold in cash. Cute trick huh? Pay for gold, and get paper.
Ladies and gentlemen, this is what happens when you go to bed with the government (Goldman Sachs/ J.P Morgan) Barrick, being the gold production monster it is has for years now provided Goldman and Morgan with the gold they sell to cap prices from going too high. Now they will pay for it dearly and no one will shed a tear. When the shareholders in Barrick realize just how bad this mess is, they will revolt, abandoning the stock all together leaving it open for attack by the shorts. As Jim Willie so brilliantly put it "How many decades of profits will be lost due to there reckless hedge book?" Gambling. Unsuccessfully too. Barrick Gold will fall. Hard. 7.2 million ounces of gold production a year will be in jeopardy, and the largest gold miner in the world (who never believed in it to begin with) will ironically become the sacrificial lamb that sends gold to 1200 and beyond. There has constantly been false reports about a merger between Barrick and Newmont mining. They are always discredited. Barrick wants Newmont's gold, scratch that NEEDS their gold, Newmont wants Barricks operations, but neither one of them will ever agree with each other because of there "policies". Simply put Newmont has never hedged. That will pay off for them soon.
I have a point of writing this of course, which I will now divulge. Newmont mining sold senior notes and has incorporated some debt recently to raise cash. A few monthes ago, Newmont bought back nearly 1/5 million shares outstanding on the company bringing it from 650 million to 465 million, a small tally for a monster gold miner like Newmont, being that Barrick has 2x that. (I will post a link to this article below) Needless to say, Newmont has some room to run in the Shares outstanding field. Lets not forget that the biggest un-hedged gold miner is probably making some good money on gold's recent climb. (Are you starting to see where I'm going with this?)
When the public finds out about the disaster that is Barrick, share prices will plummet. Under 20 or worse possibly. At which time, for a combination of cash and stock, the second largest gold miner will buy out the first, bringing Newmont Mining's annual production to over 13 million ounces a year, miles away from the next closest competitor, Anglo Ashanti at 5 million.
Now, I always say never trty and plan a take over, cause you can be assuered if you do that it won't happen. I thought for times that IAG would get bought when it was still 7-8, I thought Newmont might buy Yamana out after it sold 3 mines leaving it fairly tempting. Agnico Eagle has tripled there credit line while IAG prepares to open a monster gold mine less that 5 miles from there Flagship LaRonde... hmm. All are suspicions, educated guesses. If Newmont is able to act quick enough there will be no guessing about it. They will NOT miss their opportunity to bring them to number 1. This "theory" I am almost 100% about. We'll say 92% for now. Another prediction for the wall.
3-6 month time line predictions:
Gold will trade at 1250
Oil will trade at 90 or better
The Euro will reach close to 1.60 conversion rate
The dollar will reach .7200
Newmont mining will buy Barrick Gold.
Pay attention. This could be beyond huge...
-J
Barrick Gold, ripe for the bear Raid
http://finance.yahoo.com/news/Newmont-Mining-gets-nearly-apf-417199584.html?x=0&.v=1
Wednesday, September 16, 2009
Alchemy Financial Posts 30% Profit 1Q
In the beginning of June I opened a portfolio to manage the company assets of Alchemy Financial. My goal was to show in plain terms, why gold, why now and why Alchemy Financial. At the end of the fiscal quarter (which ended at the very beginning of September), the portfolio was up 30% from where it started a mere 3 months earlier. The goal of the company is to not only make money, but to focus our investments to gold for middle class investors who aren't necessarily "big" players in the market. What I am trying to accomplish personally out of this company is to also prove that we can outperform the best of Wall Street, and prove that you don't need a high priced fund manager to rob you blind and give you mediocre results. Three months in and so far an unbelievable success. Although Alchemy Financial is not officially open for business yet, (Target is January 2010) I wanted people to be able to see the potential there money has to offer them. Unlike a lot of fund manager's who won't always let your money go when you want it, you can come and go as you please, if you ever decide to cash out your portfolio with Alchemy Financial, a check will be sent to you in a matter of days. Our fee's a fair and straight forward, we make 25% of all profits. If you don't make money, we don't make money. Period.
If you have not had a chance to check out the website, it is www.alchemyfinancial.vze.com
If you are interested in investing with Alchemy Financial email me at alchemyfinancial@yahoo.com
-J
If you have not had a chance to check out the website, it is www.alchemyfinancial.vze.com
If you are interested in investing with Alchemy Financial email me at alchemyfinancial@yahoo.com
-J
Monday, September 14, 2009
A letter to China...
I hope and pray that when what we know is going happen does, that China is able to show more diplomacy, ethics and good sense towards the American citizen's than we show to them...
Let me start by saying America is NOT comprised of 304 million "Joe Kerns" and "Steve Leismans". Those jobs are reserved for the few hundred of us who have absolutely no understanding of economics or financial markets, so that they can inevitably lead the rest who are dumb enough to follow to financial slaughter. In Jim Cramer's words ( And I hate to do this, and wouldn't, if it wasn't so appropriate...) "They know NOTHING!!"
Over the past year American's have watched the two biggest investments they made tank: being their homes and their stock portfolios, all of which due to no fault of there own, other than buying at the top. (I can't sympothizes over there 401k's there homes however is a different story, being that regardless of the housing market, if you need to buy a home, you need to buy a home. It's not like people can sell there properties and wait 9 months till the market declines to find a new place to live. Most American's have little to zero understanding of such things to begin with. They buy a home, they start a family and try to live the best life they can afford on there modest 9-5. These people cannot be blamed for this mess, or for trying honestly to grab there own little piece of happiness, or what we like to call "The American Dream".)
Bringing us back to today, American's are not fooled by the tricks in Washington. The value of their homes is significantly lower, the cost of living is significantly going higher, and the money that wasn't lost in market last year is sitting in a bank account, or even a mattress collecting zero interest and being devalued by each and every breath they take. This of course, is all while government numbers show 10% of America is unemployed and private studies show this number closer to 16%. They see what's going on, they just don't know what to do about it. Your voice has represented the voice of of the ignored and unheard American's. Those who claim to be "First in business worldwide" criticize and even insult you for anger and deep concern over our rampant and fruitless spending of money, growing debt and lack of results to show for it all. They want to imply that because of all of our debt that you hold that you are foolishly "shooting yourself in the foot by talking down the dollar" as if your talk is the sole reason for is plummeting. They want to believe that you are stuck with us, that we can get away with this and there is nothing you can do about it because ultimately, we are better than you. (All while these drastically miss informed, self proclaimed "know-it-all's" miss the fact that you have shortened your maturities, loaded up on gold and told your citizen's to do the same.) Well I assure you that the REAL America stands with you. The "fallacy" that a weaker dollar is good for anything is just that, and we know it. It will only be a matter of time before everybody realizes that their "weaker dollar is good" theory just got pushed to far, and shows no signs of stopping.
Please understand we live in what is viewed to be the land of the free. It is nothing of the sort, as history shall prove. We enslaved men based soely on the color of there skin. We imprisoned Japaneese men, women in children in "POW type camps" only fractionally better conditions than Nazi Germany gave to there Jewish prisoner's, based on the ludicrous theory that these American Citizens all must be spies. Let us not forget that this "free" country, during the worst economic conditions it had ever seen, during a time when it was most needed, our leaders elected to serve our best interests made private ownership of gold illegal.
Our leaders will never tell us to buy gold. There ego's are too large. They are incapable of believing that they cannot play God and fix everything themselves. They would have us die trusting them and there worthless paper money. The problem with America is that our citizen's don't know where to turn to preserve there wealth, so must have not tried or jumped back on the stock market bandwagon that they were so violently thrown off of just a short time ago.
The fact that Gold is a hedge against inflation is a universal truth. The fact that Gold is best used as a hedge against the trust you have in your government is something few American's are around still to remember, but will soon figure out quickly and painfully, as this "free" country's history has proven.
The poor fools on TV know nothing of "not repeating the same mistakes of the past", as the continue to poke the "Sleeping Dragon" over and over again, with utter disregard for the possible
consequences of their actions. They are NOT America.
America stands with you. The more this begins to unfold, I hope you are able to see that and not judge this whole country for what the few and the stupid will say when there's a camera in front of them.
Let me start by saying America is NOT comprised of 304 million "Joe Kerns" and "Steve Leismans". Those jobs are reserved for the few hundred of us who have absolutely no understanding of economics or financial markets, so that they can inevitably lead the rest who are dumb enough to follow to financial slaughter. In Jim Cramer's words ( And I hate to do this, and wouldn't, if it wasn't so appropriate...) "They know NOTHING!!"
Over the past year American's have watched the two biggest investments they made tank: being their homes and their stock portfolios, all of which due to no fault of there own, other than buying at the top. (I can't sympothizes over there 401k's there homes however is a different story, being that regardless of the housing market, if you need to buy a home, you need to buy a home. It's not like people can sell there properties and wait 9 months till the market declines to find a new place to live. Most American's have little to zero understanding of such things to begin with. They buy a home, they start a family and try to live the best life they can afford on there modest 9-5. These people cannot be blamed for this mess, or for trying honestly to grab there own little piece of happiness, or what we like to call "The American Dream".)
Bringing us back to today, American's are not fooled by the tricks in Washington. The value of their homes is significantly lower, the cost of living is significantly going higher, and the money that wasn't lost in market last year is sitting in a bank account, or even a mattress collecting zero interest and being devalued by each and every breath they take. This of course, is all while government numbers show 10% of America is unemployed and private studies show this number closer to 16%. They see what's going on, they just don't know what to do about it. Your voice has represented the voice of of the ignored and unheard American's. Those who claim to be "First in business worldwide" criticize and even insult you for anger and deep concern over our rampant and fruitless spending of money, growing debt and lack of results to show for it all. They want to imply that because of all of our debt that you hold that you are foolishly "shooting yourself in the foot by talking down the dollar" as if your talk is the sole reason for is plummeting. They want to believe that you are stuck with us, that we can get away with this and there is nothing you can do about it because ultimately, we are better than you. (All while these drastically miss informed, self proclaimed "know-it-all's" miss the fact that you have shortened your maturities, loaded up on gold and told your citizen's to do the same.) Well I assure you that the REAL America stands with you. The "fallacy" that a weaker dollar is good for anything is just that, and we know it. It will only be a matter of time before everybody realizes that their "weaker dollar is good" theory just got pushed to far, and shows no signs of stopping.
Please understand we live in what is viewed to be the land of the free. It is nothing of the sort, as history shall prove. We enslaved men based soely on the color of there skin. We imprisoned Japaneese men, women in children in "POW type camps" only fractionally better conditions than Nazi Germany gave to there Jewish prisoner's, based on the ludicrous theory that these American Citizens all must be spies. Let us not forget that this "free" country, during the worst economic conditions it had ever seen, during a time when it was most needed, our leaders elected to serve our best interests made private ownership of gold illegal.
Our leaders will never tell us to buy gold. There ego's are too large. They are incapable of believing that they cannot play God and fix everything themselves. They would have us die trusting them and there worthless paper money. The problem with America is that our citizen's don't know where to turn to preserve there wealth, so must have not tried or jumped back on the stock market bandwagon that they were so violently thrown off of just a short time ago.
The fact that Gold is a hedge against inflation is a universal truth. The fact that Gold is best used as a hedge against the trust you have in your government is something few American's are around still to remember, but will soon figure out quickly and painfully, as this "free" country's history has proven.
The poor fools on TV know nothing of "not repeating the same mistakes of the past", as the continue to poke the "Sleeping Dragon" over and over again, with utter disregard for the possible
consequences of their actions. They are NOT America.
America stands with you. The more this begins to unfold, I hope you are able to see that and not judge this whole country for what the few and the stupid will say when there's a camera in front of them.
Friday, September 4, 2009
Congrats I am Gold!!!!
Iamgold closed at 14.46 on Thursday!!! Gee now aren't you glad I suggested you buy it at 11.30? I know I am as myself my father, my grandmother and our company all bought in. The last two days have been so hectic it's been hard to manage our accounts and update you at the same time. I think I don't need to tell you the obvious. IAG went to 14.60 high from 11.30 in two days. Yes, you should have sold. Hopefully you did. The market is starting to take notice that IAG is a $20 stock carefully disguised as a $11 stock. This morning there is a drastic pullback, as I anticipated, I believe that IAG may fall as far down as 12.50, but we will have to see. It will be a buy at the right price again.
As for GSS, needless to say my target of 2.75 has been seen and blown away. If you sold you were right to do so, however things will most likely continue up, and at such a large break out it's hard to price a buy in but I will say anything close to 2.75 is obvious.
TRE...(whew) What did I tell you? It has undeniably broken it's decline wedge formation and is headed to 4 eventually. It must first regain 3.38 and close above 3.50 before it will do so. Yes it was a long hold but even on a couple hundred shares purchased at 2.70 region will make it worth it when it hits 4. (which is highly likely it will stall at that point, but may continue. To far to foresee right now.)
As a side note, that BP I bought was one hell of a lucky deal after that "giant" oil discovery they announced 1 week later. No, I had no way to see that coming, but if anyone asks I'll say that "I'm just that good".
As for gold itself... it has been a nice run. The year long declining wedge formation was broken sending us a few dollars away from 4 digit territory. We made some money, so now what? I have a very simple answer...
IT IS NOW!!!
Gold will pull back most likely to the break out point at around 980. Everyone "knows" gold can not hold 1000 so they will pile onto selling. And they may be right... for about 5 min. Do not miss opportunities to buy in. you might lose money in the short term but in a longer sense you will not care. 1000 will come and go onward to better gold's all time high of 1036. I have no idea, (nor does anyone else for that matter) how and when this will happen, but I do know that it will. It could be 5 min or a few days or 4 weeks I don't know but the month of September WILL NOT END WITHOUT A RUN TO 1000!!! Whether it holds the first time or backs off and regains a short time later is up for grabs, but you will not want to be out of this market.
Another note... There is no way to know how high and how fast this thing will go. 1050, 1100, 1250, 1500 who knows? But trust me on this, DO NOT TRADE IT!! Just hold your positions. For this move your gonna want big producers, i like GG and IAG for this move.
18 trading days left(tops) before 4 digits is realized. Are you ready?
-J
As for GSS, needless to say my target of 2.75 has been seen and blown away. If you sold you were right to do so, however things will most likely continue up, and at such a large break out it's hard to price a buy in but I will say anything close to 2.75 is obvious.
TRE...(whew) What did I tell you? It has undeniably broken it's decline wedge formation and is headed to 4 eventually. It must first regain 3.38 and close above 3.50 before it will do so. Yes it was a long hold but even on a couple hundred shares purchased at 2.70 region will make it worth it when it hits 4. (which is highly likely it will stall at that point, but may continue. To far to foresee right now.)
As a side note, that BP I bought was one hell of a lucky deal after that "giant" oil discovery they announced 1 week later. No, I had no way to see that coming, but if anyone asks I'll say that "I'm just that good".
As for gold itself... it has been a nice run. The year long declining wedge formation was broken sending us a few dollars away from 4 digit territory. We made some money, so now what? I have a very simple answer...
IT IS NOW!!!
Gold will pull back most likely to the break out point at around 980. Everyone "knows" gold can not hold 1000 so they will pile onto selling. And they may be right... for about 5 min. Do not miss opportunities to buy in. you might lose money in the short term but in a longer sense you will not care. 1000 will come and go onward to better gold's all time high of 1036. I have no idea, (nor does anyone else for that matter) how and when this will happen, but I do know that it will. It could be 5 min or a few days or 4 weeks I don't know but the month of September WILL NOT END WITHOUT A RUN TO 1000!!! Whether it holds the first time or backs off and regains a short time later is up for grabs, but you will not want to be out of this market.
Another note... There is no way to know how high and how fast this thing will go. 1050, 1100, 1250, 1500 who knows? But trust me on this, DO NOT TRADE IT!! Just hold your positions. For this move your gonna want big producers, i like GG and IAG for this move.
18 trading days left(tops) before 4 digits is realized. Are you ready?
-J
Tuesday, September 1, 2009
Regarding my absence
I do apologize for the fact that I've been gone from here for the last 2 weeks. I believe the last call I made was the Goldcorp at 34. I called it a safe bet and it was. I sold it a few days ago at 37.10 and made $3000 for my company. Today it still hangs at the 37 level, if you bought it on my advice sell it today or tomorrow. I have been bombarded by so many things the last few weeks it's been difficult to devote anytime to this site, but I will try to more. If nothing else I will posts buys and sells and the targets prices for them for everything I buy personally or professionally. I like to give explanations as to why, but If you've paid attention you would have realized that majority of my calls are correct and will make you money so if there's no time for explanation, I would hope that there has been some level of trust built by now on my stock picks.
My current holdings are as follows... IAG at a price of 11.55, keep in mind 11.50 was the breakout point which has and will continue to serve as strong support, below that is support at 11.30 so buying at 11.50 is a good call that may pose an opportunity to buy more at 11.30 support. A rise to 12 is obvious and a challenge of the new 52 week high at 12.36 is itching to happen. Be sure to check hourly RSI on both gold and IAG. If both begin to fall toward 30 and IAG falls to support at either mark, it's a buy. (sounds like asking the planets to a line at once but it is actually the usual case) Remember, we buy into weakness and sell into strength and we will always make money. You need to but things when nobody wants them. Were watching hourly RSI's because daily has been uneventful. You will of course make more money on daily chart "swing" trades of course, but that is provided the RSI isn't flat, which has been the case recently.
Next is the TRE of course. Yes it's been a headache but do you see why I recommended it. I don't even remember how long I've held it now but what I do know is I bought it at 2.72 so at the 3 and teen levels I'm not complaining. Don't take the money and run just yet either, it will try to better the 100 day MA at 3.14 if a close above this level is successful, the next target will be 3.30, then to 3.50 and finally 4. When it reaches 4 I will give you my thoughts on it but for now 3.30 minimum is a given so just hold on.
GSS was sold on Friday as it was over bought. still not my target yet but it has a lot of resistance. My father bought it bake at 2.53 on Mon, that I do not recommend as of yet, although he has made money on it so far.
Finally BP. Yes British Petroleum. This one was for a lot of reasons. 1.) what I really wanted was a French oil company called Total SA (TOT) but some jerk off on CNBC told everyone to buy it when oil was up. Now it's been overbought for a week and I've been waiting for it to fall. However, BP looked great with a lot of support near the 51 level and looked as if it would challenge the 53.30 level. If it succeeded there was a lot of space in between that and 56.30 if not, I still made 2 points. Yes this site is about gold but oil is very nice too, as it also goes up based on the declining dollar, but is not usually as volatile to the price of the raw material. (they also pay great dived ends, like 5% or better.)
It's now 11:22 and things have turned down, and IAG is at the low of the day at 11.36. Buy it. If it goes to the 11.30 buy more but only if the RSI gets to or near 30 on the hourly chart. Our target is at least 12 and the time frame will be only a few days.
I'm sorry for my absence! Now, let's get back to making money!
-J
My current holdings are as follows... IAG at a price of 11.55, keep in mind 11.50 was the breakout point which has and will continue to serve as strong support, below that is support at 11.30 so buying at 11.50 is a good call that may pose an opportunity to buy more at 11.30 support. A rise to 12 is obvious and a challenge of the new 52 week high at 12.36 is itching to happen. Be sure to check hourly RSI on both gold and IAG. If both begin to fall toward 30 and IAG falls to support at either mark, it's a buy. (sounds like asking the planets to a line at once but it is actually the usual case) Remember, we buy into weakness and sell into strength and we will always make money. You need to but things when nobody wants them. Were watching hourly RSI's because daily has been uneventful. You will of course make more money on daily chart "swing" trades of course, but that is provided the RSI isn't flat, which has been the case recently.
Next is the TRE of course. Yes it's been a headache but do you see why I recommended it. I don't even remember how long I've held it now but what I do know is I bought it at 2.72 so at the 3 and teen levels I'm not complaining. Don't take the money and run just yet either, it will try to better the 100 day MA at 3.14 if a close above this level is successful, the next target will be 3.30, then to 3.50 and finally 4. When it reaches 4 I will give you my thoughts on it but for now 3.30 minimum is a given so just hold on.
GSS was sold on Friday as it was over bought. still not my target yet but it has a lot of resistance. My father bought it bake at 2.53 on Mon, that I do not recommend as of yet, although he has made money on it so far.
Finally BP. Yes British Petroleum. This one was for a lot of reasons. 1.) what I really wanted was a French oil company called Total SA (TOT) but some jerk off on CNBC told everyone to buy it when oil was up. Now it's been overbought for a week and I've been waiting for it to fall. However, BP looked great with a lot of support near the 51 level and looked as if it would challenge the 53.30 level. If it succeeded there was a lot of space in between that and 56.30 if not, I still made 2 points. Yes this site is about gold but oil is very nice too, as it also goes up based on the declining dollar, but is not usually as volatile to the price of the raw material. (they also pay great dived ends, like 5% or better.)
It's now 11:22 and things have turned down, and IAG is at the low of the day at 11.36. Buy it. If it goes to the 11.30 buy more but only if the RSI gets to or near 30 on the hourly chart. Our target is at least 12 and the time frame will be only a few days.
I'm sorry for my absence! Now, let's get back to making money!
-J
Tuesday, August 18, 2009
Monday
Yesterday was one of the best buying days I've seen for a while. I'd hope by now you wouldn't need me to have told you that yesterday. Hourly RSI's on gold and the stocks fell to the floor and were easy to recognize the opportunity. IAG fell like a stone (finally) as did a few key others particularly Goldcorp. On the IAG front the breakout was forced and premature if you ask me. The hourly RSI fell yesterday but daily has a ways to go yet. Goldcorp yesterday fell to the bottom of the trading bands at the very key 33 level. Daily RSI was in the 30's as well as hourly, and hourly gold. It's at this point a pretty good trade. Today is mildly better but not by much. I bought GG at 34 yesterday with a target of about 36 or more on it in a relatively short time frame. Things haven't stretched far today so if you can pick it up close to 34 its a safe bet. IAG is looking strange at the moment in it's performance, as it has been while it was climbing now it looks strange in it's descent for all the same reasons. I'd stay away for now at least.
As for GSS and TRE if your still holding them, that's ok. (I am btw) We will most likely not have a press release on TRE till they produce the gold, so there's time to get in time to get out and time to trade. However don't sell now, it has tanked but the RSI is pitiful and frankly up is the only way left for it. You'll be able to get above 3 for it soon. GSS got murdered yesterday but is still looking good. I don't think it will take much to push it back to the 52 week high which is now close enough to our 2.70-2.75 target at 2.69 to sell it.
Quick note on the dollar is this: The former important support line at 79.60 is now the resistance it will need to break to continue upwards. It won't. Upon reaching it it will begin declining. The closer it gets, the better a buying opportunity on gold.
In an unrelated note, thank good for the pre-season! 6 months with no football is just too long, and boy am I glad to see my Raiders kill the cowboys last week! Maybe we stand a chance this year. Anyway...
-J
As for GSS and TRE if your still holding them, that's ok. (I am btw) We will most likely not have a press release on TRE till they produce the gold, so there's time to get in time to get out and time to trade. However don't sell now, it has tanked but the RSI is pitiful and frankly up is the only way left for it. You'll be able to get above 3 for it soon. GSS got murdered yesterday but is still looking good. I don't think it will take much to push it back to the 52 week high which is now close enough to our 2.70-2.75 target at 2.69 to sell it.
Quick note on the dollar is this: The former important support line at 79.60 is now the resistance it will need to break to continue upwards. It won't. Upon reaching it it will begin declining. The closer it gets, the better a buying opportunity on gold.
In an unrelated note, thank good for the pre-season! 6 months with no football is just too long, and boy am I glad to see my Raiders kill the cowboys last week! Maybe we stand a chance this year. Anyway...
-J
Thursday, August 13, 2009
Apology
I apologize for my absence most of this week, but there was very little to talk about. Gold has gone down or broken even which is what I would have expected for this week as the sentiment on it is mostly bullish. Today was better than most but still lacked anything of excitement. If you have really quick fingers you may have been able to cash in on one of the 2 opportunities that were presented to pick up the IAG when it fell back to the break out point. If you did your making some money now, If not don't worry about it, I wasn't quick enough either. Another nice opportunity was the GSS yesterday and the day before. GSS reported there Q2 and everyone "sold the news" pushing it down to about 2.32. The next day they came into the market wondering why they sold and bout everything right back again and GSS closed up .22 or 10%. Nice! I still believe when it breaks this resistance on the weekly chart and the now new 52wk high 2.75 would be a modest place to sell, although we could go higher. 2.75-2.90 I believe will be the next leg up until we get another fall down to the break out point at 2.40-50 again. That will provide for a nice buying opportunity again. If your not in a trading mood recently fine, feel free to hold it, it will be in the 3 region before you know it, which is why this will not be just a one time quick buck on a nice breakout. I will of course continue to follow the company. (I forgot to mention a exploration report should be out soon too, I will have to get the exact date for you.)
It's been a pathetic week with that whole fed thing yesterday, so hopefully next week everyone is bearish on gold it should provide some nice moves up.
-J
P.S. The IAG hasn't much led up. There were about 10x that you could have bought it and made money, but i will tell you when to pull the trigger when everything looks right. It's still going to 12.50 then to 13 and 14, so we have plenty of time.
It's been a pathetic week with that whole fed thing yesterday, so hopefully next week everyone is bearish on gold it should provide some nice moves up.
-J
P.S. The IAG hasn't much led up. There were about 10x that you could have bought it and made money, but i will tell you when to pull the trigger when everything looks right. It's still going to 12.50 then to 13 and 14, so we have plenty of time.
Monday, August 10, 2009
Why we always leave some cash...
As I sat watching the market's action this morning around 8, or so Gold, rolled around on CNBC down $4 A nice modest loss due to some strength in the dollar. The next time it rolled by, it was down $14. "TWSAU" are at it again. Remember bull-markets are described as steady movements upwards followed by short violent corrections to the down side. Likewise, bear markets are the exact opposite. Just look at the USD index and tell me what that looks like. The dollar is dead and anyone buying into it has the attention span of a flea. Unfortunately such things is how these market's have become, an emphasis on the need to make money on something ANYTHING every day no matter what. Whether we chase prices up or down buy on high RSI's or whatever, we break all rules for the money... Gamble-holics... go to Vegas we don't want you here. The same guy on the floor of the NYSE buying Goldcorp right along with you will be the same guy who bought AIG last week (and apparently still is) How desperate are we to make profits that we will buy up a stock of a company that is still selling for -.08 times earnings and pays no dividend has no decent prospects and has the government supporting most of it. Don't be a sheep, you will make more money than you can dream of in time.
The drop in gold fits right along with a trend line that has been in place since 905, so I like gold here although things are making me rather unhappy. I told you to watch IAG as there earnings was last week and I thought it would surprise the market greatly. It did. And if you were ballsy enough to bet that they would beat expectations, you were right but you did just that...bet. this is not how I invest and is why I did not inform you to buy before the earnings. IAG is probably my favorite gold stock hands down, however, they are way within overbought territory and MUST fall eventually back to the break out point at 11.50. The breakout was premature, and pushed along by technical analysis traders based solely on their earnings report. The hourly RSI hit in the 80's on Friday and daily is about at 70. If you missed the boat, so did I, but it's the safer bet, the breakout still has far to go, and will at some point fade out and follow gold again. GSS is holding at it's breakout point and would be a good place to buy more as the target is still about 2.75 for the short term.
Sentiment this week on gold is way too bullish for my liking so I'm expecting a boring week. Like I said in the title, this is why we keep some cash on hand.
That's about all I got, as I've been not at my best for the last few days. I will keep you updated no matter how brief it may be.
Hold on...
-J
The drop in gold fits right along with a trend line that has been in place since 905, so I like gold here although things are making me rather unhappy. I told you to watch IAG as there earnings was last week and I thought it would surprise the market greatly. It did. And if you were ballsy enough to bet that they would beat expectations, you were right but you did just that...bet. this is not how I invest and is why I did not inform you to buy before the earnings. IAG is probably my favorite gold stock hands down, however, they are way within overbought territory and MUST fall eventually back to the break out point at 11.50. The breakout was premature, and pushed along by technical analysis traders based solely on their earnings report. The hourly RSI hit in the 80's on Friday and daily is about at 70. If you missed the boat, so did I, but it's the safer bet, the breakout still has far to go, and will at some point fade out and follow gold again. GSS is holding at it's breakout point and would be a good place to buy more as the target is still about 2.75 for the short term.
Sentiment this week on gold is way too bullish for my liking so I'm expecting a boring week. Like I said in the title, this is why we keep some cash on hand.
That's about all I got, as I've been not at my best for the last few days. I will keep you updated no matter how brief it may be.
Hold on...
-J
Wednesday, August 5, 2009
Hourly RSI
The weakness we've been waiting for has made a glimpse of an appearance. Gold is down $5, and hourly RSI has fallen to the high 40 range from the mid 70 range it was at yesterday. Now this is why we keep some cash on hand. If you are now 50% in cash, start buying in. I'd say go in 50% of your cash so you should still have 25% of your portfolio's value still in cash. Another Pullback is very possible but with such strength in gold recently I wouldn't want to take my chances one way or the other. The next few days could very well be some bouncing in this 960 range so lets see what happens, but a move lower on the dollar, as well as a push higher on gold towards 980 will soon be inevitable. The dollar has gotten slightly better daily RSI levels, as it was close to the 30 mark making it undersold. It now rests at 33, which is better, and still has room to go as the last few times the dollar was oversold RSI reached 26-22. Daily gold is at 61 leaving it room to run as well. (As a note action in the euro is beautiful as it is now "flagging" since its break up above 1.43 obviously waiting for a further decrease on the dollar. I've mentioned before to a few people on "investing" that don't have much liking for the market to take the cash from there savings accounts and open a brokerage account and have the broker hold the cash in Euros. If the Euro reaches the 1.60 mark, and I believe it will by the end of this year or sooner, you'd make 10% on your money by not holding dollars. Or should I say you wouldn't lose 10% like everybody else. If at all possible with your broker, hold all cash in your portfolio's in Euros. Trust me, you'll thank me in a few months.)
Onward to stocks. Gold's down today, if you listened to me on that GSS your beating the market today, and the rest of the gold industry as it is holding nicely up 3-4%. Were gonna hold this one still as the 2.70-2.75 target I have for this has not been realized. Depending on action in gold and a soon coming 2Q and exploration report Tues Aug 11 (next week) from them, that target may be moved up. I'll let you know. All though daily RSI on GSS is creeping up, It will still have room to run due to this picture perfect breakout, a move up in gold, a move down in the dollar or all three.
Next point of interest IAG will release earnings tomorrow morning. Although I expect them to be great I also expect everyone to sell the news. IAG is the next target after GSS breakout is complete. How this plan works is all up to gold and the markets response to IAG tomorrow. 11.50 is the 52wk high and it will be soon broken very similar to how GSS's was. PAY ATTENTION! This one is going to be important.
These markets are boring me so I'm taking the rest of the day off. Nothing to buy, Nothing to sell, on days like these, just go fishing, it's better than trying to force things.
-J
Onward to stocks. Gold's down today, if you listened to me on that GSS your beating the market today, and the rest of the gold industry as it is holding nicely up 3-4%. Were gonna hold this one still as the 2.70-2.75 target I have for this has not been realized. Depending on action in gold and a soon coming 2Q and exploration report Tues Aug 11 (next week) from them, that target may be moved up. I'll let you know. All though daily RSI on GSS is creeping up, It will still have room to run due to this picture perfect breakout, a move up in gold, a move down in the dollar or all three.
Next point of interest IAG will release earnings tomorrow morning. Although I expect them to be great I also expect everyone to sell the news. IAG is the next target after GSS breakout is complete. How this plan works is all up to gold and the markets response to IAG tomorrow. 11.50 is the 52wk high and it will be soon broken very similar to how GSS's was. PAY ATTENTION! This one is going to be important.
These markets are boring me so I'm taking the rest of the day off. Nothing to buy, Nothing to sell, on days like these, just go fishing, it's better than trying to force things.
-J
Tuesday, August 4, 2009
Put your pants on
Get it? Put your pants on? (or perhaps maybe cover your shorts?) If you spent the last 2 months walking around with a cinder block on your back, I bet when you took it off you'd move pretty quick too. Most of the shorts on gold have historically been in the 960 level. I'd imagine there are a few at 980 and probably the most at 1000, as everyone now knows gold will begin to fall seconds after each time it touches 1000. The best part about the action in gold today is the fact that the dollar isn't even down. It's been up or has broken even all day. Today the market is being very clear. The dollar is crashing, and at these levels of worth(lessness) in the dollar, gold is under priced, due largely impart to the shorts, make them have to cover, and watch out. So congratulations everyone we have now taken my favorite support point, 960. (It's my favorite due to the fact that it's a big point to have the shorts cover at, its a very strong support level with little over head resistance other than 980 which is not as rough to take as 960 is, and of course 1000 itself, and it's $10 closer to 1000 then to 900.) So 980 is the next target. If you want a great picture as to why a hit at 980 would be perfect, read Bob Hoye's article at 321gold at this link.. http://www.321gold.com/editorials/hoye/hoye080309.html
If you watch the trend lines, the top is at 984, give it a few days for gold to consolidate before we get there and it will taper off to 980 by the time we do. A break through this trend line would be so insanely bullish, you might just miss 1000 altogether if you make the mistake of blinking.
Now, I must note, that we want to buy into weakness which is bound to come soon on the part of gold. So if your partly in cash and in gold, perfect. You can buy on weakness and begin tapering off into strength as you make some money. (might I add, being invested in gold is so incredibly important, yes but you should always have some cash. It helps on the dips.) Anyway, the time to sell is not now, and the time to buy more is not now. If your shaving off some shares into the immense strength in gold now that's fine.
Onto the dollar. Nothing really new it's holding at its last point possible before 76. If 76 is realized, I believe a breach of 1000 will be too.
So now moving onto the stocks. Specifically my new one I recommended GSS. I recommended that and said I will be buying it on July 20th. It was 2.32 at the time. 1000 shares would be $2,320. The day I wrote about what is going on with the company it was at 2.45. It has hit a high today of 2.63 and I assure you it will be headed higher. That's a $340 dollar profit from when I first mentioned them, and a $180 profit if you waited for me to give you the "low-down"...thats just SO FAR!! I will reiterate, My target for this breakout is 2.70-2.75. $3 is not at all out of picture if gold raises to 980 or even 1000. (I bought it at 2.36 btw, yeah that would be some nice money there.)
We still wait on the TRE but at least its now at 3.12.
RSI is getting topped out, so the rest is all up to the dollar. things will most likely back off the highs by the close. Tomorrow is up for grabs.
We've done well!
-J
P.S IAMgold is reporting on Thursday, I highly recommend you pay attention and listen to the conference call, as that will be my next big play.
If you watch the trend lines, the top is at 984, give it a few days for gold to consolidate before we get there and it will taper off to 980 by the time we do. A break through this trend line would be so insanely bullish, you might just miss 1000 altogether if you make the mistake of blinking.
Now, I must note, that we want to buy into weakness which is bound to come soon on the part of gold. So if your partly in cash and in gold, perfect. You can buy on weakness and begin tapering off into strength as you make some money. (might I add, being invested in gold is so incredibly important, yes but you should always have some cash. It helps on the dips.) Anyway, the time to sell is not now, and the time to buy more is not now. If your shaving off some shares into the immense strength in gold now that's fine.
Onto the dollar. Nothing really new it's holding at its last point possible before 76. If 76 is realized, I believe a breach of 1000 will be too.
So now moving onto the stocks. Specifically my new one I recommended GSS. I recommended that and said I will be buying it on July 20th. It was 2.32 at the time. 1000 shares would be $2,320. The day I wrote about what is going on with the company it was at 2.45. It has hit a high today of 2.63 and I assure you it will be headed higher. That's a $340 dollar profit from when I first mentioned them, and a $180 profit if you waited for me to give you the "low-down"...thats just SO FAR!! I will reiterate, My target for this breakout is 2.70-2.75. $3 is not at all out of picture if gold raises to 980 or even 1000. (I bought it at 2.36 btw, yeah that would be some nice money there.)
We still wait on the TRE but at least its now at 3.12.
RSI is getting topped out, so the rest is all up to the dollar. things will most likely back off the highs by the close. Tomorrow is up for grabs.
We've done well!
-J
P.S IAMgold is reporting on Thursday, I highly recommend you pay attention and listen to the conference call, as that will be my next big play.
Saturday, August 1, 2009
Umm...
My title for this post is umm simply because the best title I could think of to describe this week's drop 35 dollars and regain it all back before the week is over would be "Head's we're bulls, tails we're bears" but I kinda used that yesterday. The overall sentiment in the market for this coming week is the same as last week just flip flopped. 6 Bullish, 14 Bearish, and 3 that would prefer to abstain from voicing there opinion. (I think the 3 have the right idea In the words of my Grandmother/ Abraham Lincoln, "If you don't have anything nice to say, or you think that by saying it you would confirm to any speculators that yes, you actually are an idiot, than just keep your mouth shut." Or something like that.) Friday's can be odd, especially when the end of the week coincides with the end of the month, as it did yesterday, but the fact that the majority is bearish leaves the bulls plenty of room to run in the upwards direction. RSI is creeping up on the daily charts. It now sits at 58-59 for gold, oil, the euro Vs dollar, and platinum. (Brent is at 62) Point being that despite drastic gains in price the relative strength has yet to capture it old peak set a few days earlier at 62. RSI is tricky and can often be a double edged sword. You want it to go up because it shows, interest in buying, however to quickly and you burn out. But even once it gets to its old peak at 62, 70 is overbought and you can generally expect a turn soon. The increase is bullish, meeting the old peak would be more bullish, but leave us with little room left to run from there. Right now we're not too high and not too low, resting at a now major support/resistance point, on our way to the all important 960. So although Monday might show us some declines, I think for the week, we will show gains. (Before I forget, The dollar is back at the 52 week low. I don't know how long they will try to hold it up, as it will most likely be a long way down from there, but I'm going to work Monday ready for a fight.)
Now onwards to stocks. TRE...better... umm, you know what I'm gonna say about that...(We're waiting Mr. Sinclair...)
My focus now is going to be on the biggest gainer in the industry Friday. Golden Star Resources. (Remember guys, I called this one out to you on July 20th when it was about 2.20, and now its 2.46, after breaking its 52 week high by 7 cents for an overall gain of 20 on Fri. That's $250 on a measly 1000 shares. Oh yeah, and it's not done yet.) The point of why I do this is because you NEED to be invested in gold for the long term. But you also need to eat 3 times each day. If you were invested in anything gold Friday you made money if you were invested in GSS, you made more than the other guy. (The difference is your grocery bill, get the idea?) You should never trade on Technical analysis alone, you need to know the fundamentals behind it. However you also need to understand that good technicals (Chart) on a stock are TELLING you there's good fundamentals behind it. So here's what they are, straight out of the Vice President of Corporate Development, Mr. Bruce Higson-Smith's mouth.
Aside from all things "Exploration" going very smoothly, GSS is expecting production for 2009 to be in at 400-500 thousand oz. (Which they unfortunately had to hedge 1/4 of the years production 100,000 ozs due to the slam it got back in November which took it down to 40 cents a share. That hedge will expire at the end of the year and in the grand scheme of things is "peanuts" anyway.) There cost is an avg of $550 per oz which is high but still very good for a little guy like this. The company was able to significantly lower costs by reducing there rate per kilowatt hours to 6-8 cents. (It was 14 a month ago and 17-18 a year ago.) They have only 286 million shares outstanding which is good, as alot of juniors and exploration companies have little way of producing money in the beginning other than issuing ridiculous amounts of shares for pennies. To keep things in perspective, Newmont has 450 million, Yamana has 720, Goldcorp has 700 and my personal favorite IAMgold has only 360.
Now other than that, these guys are pretty damn smart. Mr. Higson-Smith knows what he's doing which is really good, because even when your sitting on a gold mine, an idiot could mess it up in a minute. (Did I mention that Mr. Higson-Smith wanted to hedge there oil cost for the year this December at $35!!?) They wouldn't let him unfortunately, but the man has the right idea and I like that. Getting back to the technicalities, It just made a new 52 week high Friday and is in the midst of a beautiful breakout, that I expect about 15% on. My target will be 2.70 min for the very short term. RSI is still friendly as well.
Well folks, that's whats going on, and now I'm really tired of typing. It's Sat, and I need to mow the lawn.
I'll see you on Monday! (Remember where your fightin' shoes!)
-J
Now onwards to stocks. TRE...better... umm, you know what I'm gonna say about that...(We're waiting Mr. Sinclair...)
My focus now is going to be on the biggest gainer in the industry Friday. Golden Star Resources. (Remember guys, I called this one out to you on July 20th when it was about 2.20, and now its 2.46, after breaking its 52 week high by 7 cents for an overall gain of 20 on Fri. That's $250 on a measly 1000 shares. Oh yeah, and it's not done yet.) The point of why I do this is because you NEED to be invested in gold for the long term. But you also need to eat 3 times each day. If you were invested in anything gold Friday you made money if you were invested in GSS, you made more than the other guy. (The difference is your grocery bill, get the idea?) You should never trade on Technical analysis alone, you need to know the fundamentals behind it. However you also need to understand that good technicals (Chart) on a stock are TELLING you there's good fundamentals behind it. So here's what they are, straight out of the Vice President of Corporate Development, Mr. Bruce Higson-Smith's mouth.
Aside from all things "Exploration" going very smoothly, GSS is expecting production for 2009 to be in at 400-500 thousand oz. (Which they unfortunately had to hedge 1/4 of the years production 100,000 ozs due to the slam it got back in November which took it down to 40 cents a share. That hedge will expire at the end of the year and in the grand scheme of things is "peanuts" anyway.) There cost is an avg of $550 per oz which is high but still very good for a little guy like this. The company was able to significantly lower costs by reducing there rate per kilowatt hours to 6-8 cents. (It was 14 a month ago and 17-18 a year ago.) They have only 286 million shares outstanding which is good, as alot of juniors and exploration companies have little way of producing money in the beginning other than issuing ridiculous amounts of shares for pennies. To keep things in perspective, Newmont has 450 million, Yamana has 720, Goldcorp has 700 and my personal favorite IAMgold has only 360.
Now other than that, these guys are pretty damn smart. Mr. Higson-Smith knows what he's doing which is really good, because even when your sitting on a gold mine, an idiot could mess it up in a minute. (Did I mention that Mr. Higson-Smith wanted to hedge there oil cost for the year this December at $35!!?) They wouldn't let him unfortunately, but the man has the right idea and I like that. Getting back to the technicalities, It just made a new 52 week high Friday and is in the midst of a beautiful breakout, that I expect about 15% on. My target will be 2.70 min for the very short term. RSI is still friendly as well.
Well folks, that's whats going on, and now I'm really tired of typing. It's Sat, and I need to mow the lawn.
I'll see you on Monday! (Remember where your fightin' shoes!)
-J
Thursday, July 30, 2009
Heads were bulls, tails were bears.
Probably is how some of these people are doing there gold investing these days. Sure enough as I thought, The dollar was unable to break above the mid 79 region and gold retook 930. More interesting was the hourly RSI level which fell into way oversold territory yesterday at one point all the way to 20. Today, it was back up to a peak of 62. Oversold to overbought in 24 hrs or less. If this keeps up no one will be getting anywhere. Daily RSI is at 48, half way between over bought or oversold with a slight bias to over sold. What happens tomorrow will be anyone's guess. There is just as much an argument for going up as there is for going down, so my suggesting is hold whatever you got. Don't buy, don't sell. If your holding cash, hold cash. if your half invested stay that way. If your fully invested same thing. No use trying to gamble here.
The two biggest gainers in the mining sector today have been AEM which posted good earnings and my little GSS which i believe is gearing itself up to surprise a few people. As I write this TRE is at least back above 3, as we all anticipate any news from Mr. Sinclair.
Rick Santelli's grade for yesterday's treasury auction- D. The government will soon have to face the inevitable, as they are incapable of prevention, only prolongment.
As a note on tomorrow's possible action, hourly RSI on Crude oil is at the highest its been for as far back as the hourly chart allows me to see... a whopping 73.5... needless to say, overbought, and where oil goes, gold will follow.
Other than that, today's market action is far from surprising for me so i have nothing else to report. (WTF is up with the market? DJIA at 9200, S&P gearing up for a possible crack of 1000 today and Nasdaq already touching 2000? They do know that a weaker dollar is generally BAD for stocks right?)
Signing off my friends.
-J
P.S if you've never seen it before, take a look at my new debt clock at the bottom of the page. you can click it to go to the site and get more info. 61 trillion and counting. 1 million every 3 sec.
"Couple billion hear, couple billion there, after a while were talking about real money."
The two biggest gainers in the mining sector today have been AEM which posted good earnings and my little GSS which i believe is gearing itself up to surprise a few people. As I write this TRE is at least back above 3, as we all anticipate any news from Mr. Sinclair.
Rick Santelli's grade for yesterday's treasury auction- D. The government will soon have to face the inevitable, as they are incapable of prevention, only prolongment.
As a note on tomorrow's possible action, hourly RSI on Crude oil is at the highest its been for as far back as the hourly chart allows me to see... a whopping 73.5... needless to say, overbought, and where oil goes, gold will follow.
Other than that, today's market action is far from surprising for me so i have nothing else to report. (WTF is up with the market? DJIA at 9200, S&P gearing up for a possible crack of 1000 today and Nasdaq already touching 2000? They do know that a weaker dollar is generally BAD for stocks right?)
Signing off my friends.
-J
P.S if you've never seen it before, take a look at my new debt clock at the bottom of the page. you can click it to go to the site and get more info. 61 trillion and counting. 1 million every 3 sec.
"Couple billion hear, couple billion there, after a while were talking about real money."
Wednesday, July 29, 2009
...like a chinese fire drill (or maybe treasury auction?)
Phew! Things almost got ugly there for a minute! I mean the GDP numbers come out on Friday, Gold is rising again and showing a beautiful chart formation, the euro vs dollar made a new high for the year, the treasury auction is this week and the Chinese are growing more and more discontent with are fruitless spending and printing of money which was causing the US dollar to come dangerously close to making a new low for the year. Thank God for the US dollar! Right when we needed it to, it came screaming up from the bowels of hell defying all logic, technicalities and fundamentals stacked against it!
If your buying into that, I've got a bridge for sale...
The cold hard fact of the matter is this, TWSAU (Those who stand against us) allowed us to run for a little longer than usual, then they pulled our leash. The amount of government intervention in the markets is obscene. (After all a bullish chart formation is always bullish...unless it's found in the gold comex, then its anyone's guess.) If they don't like it, they'll manipulate it. "Well why is gold going up?" cause the dollar is crashing. "Well why is the dollar crashing?" because you devalued it. "Well why was it devalued, I thought America was the most powerful country in the world, how come are money sucks?" Maybe it had something to do with giving 2 million dollars in "stimulus" money to promote astronomy in Hawaii, 2.2 million for the Center for Grape Genetics, ( yes that's no type-o, grapes, and genetics, just in case there is a grape or two that finds out late in life it happened to be adopted and now is feeling some way about that, we're covered. Heaven forbid they get too upset... no logically it's most likely an organization that attempts to create grapes artificially without using seeds. Cause after all, if the sh** hits the fan, at least we still have plenty of grapes.) and nearly 1/2 a million to combat bullying in schools... in Montana. (So if your in the chess club in a school in Wyoming, your S.O.L.)
The most important thing in the world for the "ladies" and "gentlemen" in our government is there ego. We just simply can not have a treasury auction while the dollar crashes. So them and there cronies intervened in there usual "treat the symptom not the cause" sort of way. Rather than take a few hundred million dollars and buy the dollar to spark some interest and prop it up a bit (which they did do a bit, as you can see from the recent, lets say, not quite weakness in the dollar the last 2 days) Instead they treated the symptom. So they spent there energy slamming gold and oil ( to prove their point), and they expect us too look at this and not see anything that is say... unnatural about it.
I assure you the day for illegal and immoral practices of such blatant manipulations in the market place has come. They live on borrowed time. In the words of Rick Santelli... "Call it what ever you want, the people can see the value of there home's decreasing and their day to day costs increasing" (Deflation argument= over, plain and simple.)
On Monday July 20th I said sell the gold market. If you had listened to me you missed out on a $4 further price gain in gold, and over a $25 price loss from there. On July 9th I recommended TRE. 1 Day later I purchased it at 2.72 If you had sold in a rough time frame from when I said to sell the gold market, you could have turned around and gotten anywhere from 3.03 for it minimum (The low of the day after I said sell, a 12.5% increase) to 3.38 (the high it hit 3 days after i said to sell.) A possible .68 cent profit on a 2,700 cost would have made you a possible 680 dollars in 2 weeks. That's 25% in 2 weeks! (Folks, if i was bad at what i do, I'd find another day-job.)
So where do we go from here? Right now gold has been slammed down to its major support line at 930. If it is able to hold and the dollar reaches resistance it cannot break in the mid 79 range, than this might be it for this downward leg. Next stop will be to recapture the mid 940's and on to our all important 960. If that doesn't happen, the 910-900 region will be visiting us soon after. It is imperative that the dollar be held up at this moment in time and 2 days worth of support seems like far too little effort. If I were to go with my gut, I'd say prepare for a double bottom at 905. So the game plan now is, if you sold all, stay in cash, if you sold half, keep the half, we may have an up-day soon, that could very well clarify the big picture more than it is now, but i DO NOT recommend this as a buying point. There are certain patterns that the gold stocks and gold all have in common when things are going to turn one way or the other. One is the RSI. When the RSI on gold itself reaches near the 35-40 mark, I believe that will be the time to buy. In addition the gold stocks seem to have the same situation in between the 35 to 40 mark. The funny thing is, how quickly it fell. At the drop of a hat and every bull is now a bear, far to soon and far to violent for my liking, or too maintain such a pattern. Tomorrow will be a gleam of light for the remaining bulls. Either a break-even day or a few dollars up, before moving downwards further. Again I think this is all centered around the RSI so do your own research and look into this. Spend some time and analyze. (As well as the dollar which it's RSI went from 37 to 72 on the hourly chart in 2 days, more than enough to reach into "Overbought" very soon, that is if the government will allow it.) I'll keep you informed on my thoughts.
The dollar is on life support. Literally. Just keep that in mind.
Stay strong. With every dollar spent on every illegal short, "Those Who Stand Against Us" stand closer and closer to us, then they think (or would like for that matter.)
-J
If your buying into that, I've got a bridge for sale...
The cold hard fact of the matter is this, TWSAU (Those who stand against us) allowed us to run for a little longer than usual, then they pulled our leash. The amount of government intervention in the markets is obscene. (After all a bullish chart formation is always bullish...unless it's found in the gold comex, then its anyone's guess.) If they don't like it, they'll manipulate it. "Well why is gold going up?" cause the dollar is crashing. "Well why is the dollar crashing?" because you devalued it. "Well why was it devalued, I thought America was the most powerful country in the world, how come are money sucks?" Maybe it had something to do with giving 2 million dollars in "stimulus" money to promote astronomy in Hawaii, 2.2 million for the Center for Grape Genetics, ( yes that's no type-o, grapes, and genetics, just in case there is a grape or two that finds out late in life it happened to be adopted and now is feeling some way about that, we're covered. Heaven forbid they get too upset... no logically it's most likely an organization that attempts to create grapes artificially without using seeds. Cause after all, if the sh** hits the fan, at least we still have plenty of grapes.) and nearly 1/2 a million to combat bullying in schools... in Montana. (So if your in the chess club in a school in Wyoming, your S.O.L.)
The most important thing in the world for the "ladies" and "gentlemen" in our government is there ego. We just simply can not have a treasury auction while the dollar crashes. So them and there cronies intervened in there usual "treat the symptom not the cause" sort of way. Rather than take a few hundred million dollars and buy the dollar to spark some interest and prop it up a bit (which they did do a bit, as you can see from the recent, lets say, not quite weakness in the dollar the last 2 days) Instead they treated the symptom. So they spent there energy slamming gold and oil ( to prove their point), and they expect us too look at this and not see anything that is say... unnatural about it.
I assure you the day for illegal and immoral practices of such blatant manipulations in the market place has come. They live on borrowed time. In the words of Rick Santelli... "Call it what ever you want, the people can see the value of there home's decreasing and their day to day costs increasing" (Deflation argument= over, plain and simple.)
On Monday July 20th I said sell the gold market. If you had listened to me you missed out on a $4 further price gain in gold, and over a $25 price loss from there. On July 9th I recommended TRE. 1 Day later I purchased it at 2.72 If you had sold in a rough time frame from when I said to sell the gold market, you could have turned around and gotten anywhere from 3.03 for it minimum (The low of the day after I said sell, a 12.5% increase) to 3.38 (the high it hit 3 days after i said to sell.) A possible .68 cent profit on a 2,700 cost would have made you a possible 680 dollars in 2 weeks. That's 25% in 2 weeks! (Folks, if i was bad at what i do, I'd find another day-job.)
So where do we go from here? Right now gold has been slammed down to its major support line at 930. If it is able to hold and the dollar reaches resistance it cannot break in the mid 79 range, than this might be it for this downward leg. Next stop will be to recapture the mid 940's and on to our all important 960. If that doesn't happen, the 910-900 region will be visiting us soon after. It is imperative that the dollar be held up at this moment in time and 2 days worth of support seems like far too little effort. If I were to go with my gut, I'd say prepare for a double bottom at 905. So the game plan now is, if you sold all, stay in cash, if you sold half, keep the half, we may have an up-day soon, that could very well clarify the big picture more than it is now, but i DO NOT recommend this as a buying point. There are certain patterns that the gold stocks and gold all have in common when things are going to turn one way or the other. One is the RSI. When the RSI on gold itself reaches near the 35-40 mark, I believe that will be the time to buy. In addition the gold stocks seem to have the same situation in between the 35 to 40 mark. The funny thing is, how quickly it fell. At the drop of a hat and every bull is now a bear, far to soon and far to violent for my liking, or too maintain such a pattern. Tomorrow will be a gleam of light for the remaining bulls. Either a break-even day or a few dollars up, before moving downwards further. Again I think this is all centered around the RSI so do your own research and look into this. Spend some time and analyze. (As well as the dollar which it's RSI went from 37 to 72 on the hourly chart in 2 days, more than enough to reach into "Overbought" very soon, that is if the government will allow it.) I'll keep you informed on my thoughts.
The dollar is on life support. Literally. Just keep that in mind.
Stay strong. With every dollar spent on every illegal short, "Those Who Stand Against Us" stand closer and closer to us, then they think (or would like for that matter.)
-J
Monday, July 27, 2009
Still "Flagging"
Here we are on another Monday, which is usually a bad day for gold, and gold futures touched 960 today. Hmm... Then 9:30 rolls around and TWSAU waited just long enough for you to buy some gold stocks at the opening and slammed the price down 5 min later "ha serves you right gold bugs!" As sicking as it can be remember, they use paper contracts to manipulate you out of your gold. It's like the population of Texas fighting the population of New Hampshire. Only NH has tanks and Texas has swords. Sure were out numbered and they'll attack the living hell out of us for a while. But remember, for every one dead New Hampshiren (Is that a word) There is 300 dead Texans. We will prevail in time. And the time is sooner than you think.
The action in gold continues to flag. Which is bullish and also annoying. My reason for saying sell is being more confirmed. Majority is bullish on gold, meaning there is less money to buy in to it (making prices rise) This stalemate is predictable, and the action has been confirmed in the majority of the gold stocks which are also "flagging". If you ever are in a situation such as this one, and are unsure as to the next step in gold a wise plan is to sell half. If gold/ the stock drops, you now have the ability to buy more an offset your price (unless you think it still has room to go) If not, you still made money, and at least the cash you have didn't change either.
I'm beginning to wonder where TWSAU have been this whole time, as we are overdue for a pullback and the only time i see them appear is to cap off the buying of gold after it has climbed a few dollars. (hence why we haven't had any $10 up days either.) The mid to high 950's seem to be there "ok you assholes have had enough buying now" point because it is not a major resistance point nor is the 949-953 region a major support point but the buying seems to enter there and the selling seems to not want us to get near 960.
Now onto the individual stocks themselves. I've been having a hard time finding useful info on Golden Star Resources, GSS, but I expect to soon, and i promise i will not hold out. IAG has been flowing with good news for months and I expect the Q2 report to beat expectations. that combined with what will be a beautiful breakout at 11.50 with a little more help from the gold price should make for a great buy. However I would wait a little to see if we get that pullback, if we do then buy if we don't, anywhere from 11-11.50 is a good buy target because wants it does break, I believe it will be headed to 12.50. (GSS has a similar pattern and with some help from gold and a good Q2 the same will occur. A viable target for them would be around 2.65-2.75, maybe more but of course you can buy 5x more of that.
As for my favorite right now TRE, its now down $0.20. Why? got me, people love to short this one. Also as to why Jim Sinclair hasn't had a press release as to what the plans for the company are for the rest of 2009 is beyond me because the news would send it screaming. (although if I had to guess I'd say he's seen it creeping up on its own already so is waiting a bit before releasing it.) This one I wouldn't wait for. How high it will go I don't know, but I can tell you it will go to 4, so buying it at the price it is now (3.13) is a no brainer.
Another boring day on the NYSE. Just remember, if we didn't have down days, there'd be no up days.
-J
The action in gold continues to flag. Which is bullish and also annoying. My reason for saying sell is being more confirmed. Majority is bullish on gold, meaning there is less money to buy in to it (making prices rise) This stalemate is predictable, and the action has been confirmed in the majority of the gold stocks which are also "flagging". If you ever are in a situation such as this one, and are unsure as to the next step in gold a wise plan is to sell half. If gold/ the stock drops, you now have the ability to buy more an offset your price (unless you think it still has room to go) If not, you still made money, and at least the cash you have didn't change either.
I'm beginning to wonder where TWSAU have been this whole time, as we are overdue for a pullback and the only time i see them appear is to cap off the buying of gold after it has climbed a few dollars. (hence why we haven't had any $10 up days either.) The mid to high 950's seem to be there "ok you assholes have had enough buying now" point because it is not a major resistance point nor is the 949-953 region a major support point but the buying seems to enter there and the selling seems to not want us to get near 960.
Now onto the individual stocks themselves. I've been having a hard time finding useful info on Golden Star Resources, GSS, but I expect to soon, and i promise i will not hold out. IAG has been flowing with good news for months and I expect the Q2 report to beat expectations. that combined with what will be a beautiful breakout at 11.50 with a little more help from the gold price should make for a great buy. However I would wait a little to see if we get that pullback, if we do then buy if we don't, anywhere from 11-11.50 is a good buy target because wants it does break, I believe it will be headed to 12.50. (GSS has a similar pattern and with some help from gold and a good Q2 the same will occur. A viable target for them would be around 2.65-2.75, maybe more but of course you can buy 5x more of that.
As for my favorite right now TRE, its now down $0.20. Why? got me, people love to short this one. Also as to why Jim Sinclair hasn't had a press release as to what the plans for the company are for the rest of 2009 is beyond me because the news would send it screaming. (although if I had to guess I'd say he's seen it creeping up on its own already so is waiting a bit before releasing it.) This one I wouldn't wait for. How high it will go I don't know, but I can tell you it will go to 4, so buying it at the price it is now (3.13) is a no brainer.
Another boring day on the NYSE. Just remember, if we didn't have down days, there'd be no up days.
-J
Tuesday, July 21, 2009
1000 again
Gold is at 950 right now. So that always triggers the debate of which will come first, the test of 900 or the test of 1000. Honestly I think we could be waiting till September before we see 1000 again, but that is the target in sight. I said yesterday that today we'd either "fall" or "stall" it appears to be the latter. If you sold yesterday good for you. This is one of those situations were you should sell half and ride the other half just to cover your bases. If that's what you did, your other half should be safe today. A pullback will come, you can bet on it, "Those who stand against us" will not let gold travel upwards unopposed. There are times when they brutally slaughter us, just keep this in mind: Although there are a good number of honest and legal shorts on gold and it's stocks, the slams we've become so used to are not. Naked, illegal shorting, in mass quantities. While the on going inflation/deflation argument continues, who would take the amount of money required to slam gold down the amounts we've seen and run the risk they might be wrong? (See above) TWSAU. ("Those who stand against us") I hope you understand who I refer to when I say this. Those who have the most to lose if gold continues upwards. (Not to mention those that have the financial means of trying to harbor it from doing so.) No, I'm not a conspiracy theorist. (well maybe a little) I have seen it. Massive selling of gold I mean were talking millions of dollars. If gold is 900, why would you dump 5000 oz on the market at once? If you hit it with 1000, the price will be dented but then recoup to 900 again. Then you sell some more, and so on. If you hit it all at once by the time the last of it sells, your getting 15 dollars less for it per oz! Man whoever doing that sure isn't looking out for their clients best interest! (Unless however, violent drop in price meant to scare you into selling low too, is the point.) I kid you not, pay attention to the Comex (Crimex as Jim Sinclair has coined it.) You'll see. You won't even have to watch long either.
The point is, that we buy gold as a hedge against government spending. The more money they print, the more gold goes up. Then they get worried about gold prices and come in to slam it down. (There by spending money they don't have, meaning they have to "create" more, and all together negating the purpose for why they do it to begin with.) They cannot change the trend, they can only prolong it, which they have been good at. But the more they continue to the more they lay down the bedrock for why gold will go to over $5000 oz or higher.
The moral my friends is to be patient. Don't get discouraged when you see this, its ok, just smile and recognize what's going on as TWSAU are incapable of seeing. There digging their graves for you. Buy on such slams and embrace what is to come.
And be careful out there, we're about do for one!
-J
The point is, that we buy gold as a hedge against government spending. The more money they print, the more gold goes up. Then they get worried about gold prices and come in to slam it down. (There by spending money they don't have, meaning they have to "create" more, and all together negating the purpose for why they do it to begin with.) They cannot change the trend, they can only prolong it, which they have been good at. But the more they continue to the more they lay down the bedrock for why gold will go to over $5000 oz or higher.
The moral my friends is to be patient. Don't get discouraged when you see this, its ok, just smile and recognize what's going on as TWSAU are incapable of seeing. There digging their graves for you. Buy on such slams and embrace what is to come.
And be careful out there, we're about do for one!
-J
Monday, July 20, 2009
tsk, tsk...
If you didn't take my advice and buy when I called the bottom at 905, that's fine. My own grandmother didn't either... It can be hard to want to buy something that has spent the last month or so agonizingly plummeting, but keep in mind that's only your emotions talking, and fear can be one hell of a convincing emotion. This is an EMOTIONLESS BUSINESS!! This is why we have those little sayings. ( Bulls make money, Bears make money and pigs get slaughtered) ie: don't be greedy, you'll never regret taking a profit. (Or as my grandfather would say, "leave some money for the next guy.") The fact of the matter is kiddies, If the big slide spooks you, you might as well sit on the sidelines. (Did you get that analogy?) But like I said that's fine. If you've been following me since I started, you've made some money, (Or at least now realize you could have) If not, or if your new here, that's fine, this is how business is done. First we need to build a good repertoire. You heard me say buy and I was right, now I'm going to tell you to sell.
I don't know If I'm going to nail this one direct or not as I did with the buy, but it will be soon. The dollar will rally a bit and gold will rightfully have "those that stand against us" come in and push it around like its the retarded child on the playground. But it will be short lived. We will have to wait and see what happens. But for now if gold doesn't fall tomorrow it will "stall" tomorrow. The new founded bullish sentiment will wear off as the rest of the world awaits a correction and sells off too, leaving you far off from the best numbers of the week. (Sell it to them when they want it... another favorite of mine.) Don't wait for everyone else to figure out what I'm telling you now. By then things will be significantly lower.
The fact of the matter is, somethings have to happen based on certain events and somethings can't happen. We buy gold because it is the only true currency. And we await the day the rest of the world figures it out too, sending gold straight up for days. But my friends, that day is soon, but not today. Things are overextended through the top of the trading bands, and is far to steep to be maintained, (and the inverse for the dollar). Sell now, and await further instructions.
Good Luck out in those markets my friends, I know how rough it can be.
-J
P.S I'm sorry my new stock quote application is not giving the up/down change numbers, but I added both the HUI gold bugs index and Golden Star Resources which is a stock I want to play around with. Check them out.
I don't know If I'm going to nail this one direct or not as I did with the buy, but it will be soon. The dollar will rally a bit and gold will rightfully have "those that stand against us" come in and push it around like its the retarded child on the playground. But it will be short lived. We will have to wait and see what happens. But for now if gold doesn't fall tomorrow it will "stall" tomorrow. The new founded bullish sentiment will wear off as the rest of the world awaits a correction and sells off too, leaving you far off from the best numbers of the week. (Sell it to them when they want it... another favorite of mine.) Don't wait for everyone else to figure out what I'm telling you now. By then things will be significantly lower.
The fact of the matter is, somethings have to happen based on certain events and somethings can't happen. We buy gold because it is the only true currency. And we await the day the rest of the world figures it out too, sending gold straight up for days. But my friends, that day is soon, but not today. Things are overextended through the top of the trading bands, and is far to steep to be maintained, (and the inverse for the dollar). Sell now, and await further instructions.
Good Luck out in those markets my friends, I know how rough it can be.
-J
P.S I'm sorry my new stock quote application is not giving the up/down change numbers, but I added both the HUI gold bugs index and Golden Star Resources which is a stock I want to play around with. Check them out.
Thursday, July 9, 2009
Calling bottom at 905
I'm going to go out on a limb here and say buy. I'm calling the bottom at 905, and here's why:
1. Gold is hitting below the trading bands at 905 which is generally a buy signal anyway if you wanna leave it at that.
2. As I've said before when I've so many times stated that gold will not fall below 930, In these situations today that we face a price for gold below 930 oz CAN NOT BE SUSTAINED!! Yes you will see it go beyond there, the powers that be that hate the gold bulls are good at shattering our hope, but they cannot stop the trend! They can only delay it. (I know it sucks, I'm impatient too.)
3. In September '08 gold fell from its high at 990 till it hit a low of 700 in Nov. That was a 30% decline. In April gold fell to 865 from it's high at 1000... a 14% decline...( half of a 30% decline) now gold has fallen from 990 again to 905 an 8% decline... notice a pattern here?
Consolidation will continue more on the up side now. Continue to trade with caution. this summer will be spent as most in the markets...dull. But in that time we will work are way up to what I presume to be 1080 by September. (Possibly 1050 or meeting of the old high at 1035.) Can you guess what will most likely follow then? a 4% decline, then 1200 will greet us soon.
If you want a good stock to trade on this, I have a great one. TRE Tanzanian Royalty Exploration. This is Jim Sinclair's company, the company owned by the guy who called the gold market within 13 dollars in the 80's, then went and started a cable tv company. TRE is a short sellers delight, but it wouldn't be if they knew what he was planning. His properties in Ghana west Africa have so much gold on the surface, he's gonna send trucks in there to rake up the gravel and just pick it up. the bring it to the mill where they expect to be pouring gold bars by the END OF THIS YEAR!! Do you know what happens to a gold stock when they announce they poured gold for the first time? They usually double. At least. Plus because there picking it up off the ground there expecting a cost of $50/OZ!! Sinclair is a family friend of mine, and he is so kind you can call the CEO (him) at his home! This is a $6 stock by Jan guaranteed.
This is a bull market remember, buy on pull backs. Next target will be to take back 930.
-J
1. Gold is hitting below the trading bands at 905 which is generally a buy signal anyway if you wanna leave it at that.
2. As I've said before when I've so many times stated that gold will not fall below 930, In these situations today that we face a price for gold below 930 oz CAN NOT BE SUSTAINED!! Yes you will see it go beyond there, the powers that be that hate the gold bulls are good at shattering our hope, but they cannot stop the trend! They can only delay it. (I know it sucks, I'm impatient too.)
3. In September '08 gold fell from its high at 990 till it hit a low of 700 in Nov. That was a 30% decline. In April gold fell to 865 from it's high at 1000... a 14% decline...( half of a 30% decline) now gold has fallen from 990 again to 905 an 8% decline... notice a pattern here?
Consolidation will continue more on the up side now. Continue to trade with caution. this summer will be spent as most in the markets...dull. But in that time we will work are way up to what I presume to be 1080 by September. (Possibly 1050 or meeting of the old high at 1035.) Can you guess what will most likely follow then? a 4% decline, then 1200 will greet us soon.
If you want a good stock to trade on this, I have a great one. TRE Tanzanian Royalty Exploration. This is Jim Sinclair's company, the company owned by the guy who called the gold market within 13 dollars in the 80's, then went and started a cable tv company. TRE is a short sellers delight, but it wouldn't be if they knew what he was planning. His properties in Ghana west Africa have so much gold on the surface, he's gonna send trucks in there to rake up the gravel and just pick it up. the bring it to the mill where they expect to be pouring gold bars by the END OF THIS YEAR!! Do you know what happens to a gold stock when they announce they poured gold for the first time? They usually double. At least. Plus because there picking it up off the ground there expecting a cost of $50/OZ!! Sinclair is a family friend of mine, and he is so kind you can call the CEO (him) at his home! This is a $6 stock by Jan guaranteed.
This is a bull market remember, buy on pull backs. Next target will be to take back 930.
-J
Friday, June 26, 2009
June 26 2009
Right when we thought we had it, 940 is forced out of our grasp. Although at 11:16 am gold desperately holds onto 940 + pennies, the moral was stolen from us. Gold stocks are not liking this one bit as the HUI index falls a bit, but maintains above its original inverse head and shoulders break point at 350. Its not at all uncommon to watch it retest lows before its real explosion. The index is probably one of my favorite and valuable tools to watch for investor's "mindsets". It's rated based on the strengths of different gold mining companies and there influence on that part of the market. Goldcorp is the most heavily rated company on the index, as well it should be. Followed by Barrick, Anglo Ashanti (that one I can't explain...) and Newmont. Agnico is not far down that list from their and neither is Iamgold, which is a stronger rated stock than even Yamana or Harmony (which is dead last). If you took my advice and bought Iamgold last week or the week before you probably picked it up anywhere from the low 10's to the low 9's and are most likely either in positive territory or very positive territory. This company is an unrealized monster. If you kept up on the news, they purchased 17% of a junior gold company called Oromin. (which was like 14 million shares at .60 a share and is now .90, so they basically turned 9 miliion dollars into about 14 million in one week.) And increased the reserves on both there Esskanna project in Ghana opening next year and the Westwood project in Quebec opening in 3 years. They also increased there expected production from 880,000 oz this year to 920,00, edging closer to the million mark. Some of my colleagues believe that a 100% increase in Agnico Eagles credit limit, and the fact that there flagship mine LaRonde only 2 miles down the road from Iam's Westwood, will cease producing its expected amounts in the near future means a possible buyout or merger between the two. Anything is possible, but don't try to plan mergers. If it happens and you own the stock when it does great, but don't buy it cause you think somethings in the works, cause even if your right (and few ever are, these things always come when you least expect it) It will almost certainly not be on your time scale. Buy I am gold because it will be worth $14 in a matter of weeks, not because you want to make a quick buck on a takeover.
We have 2 more trading days left in June... 1000 is now looking like it won't happen this month, but don't rule anything out. My revised expectations is still very soon July will make the diffrence. The dollar is dying. Commodities always go up in weak currency situations. The more money we print/throw at our problems that we dont have to begin with, the more the buying power of the cash in your pocket decrease. Protect yourself. Gold will outperform all, and oil will be second, although in contrast it won't be much of a close second. Oil you produce and destroy. gold can never be destoyed and will ALWAYS be money.
Tick tock tick tock. Keep the faith and pateince (and positions!) It's comming soon
-J
We have 2 more trading days left in June... 1000 is now looking like it won't happen this month, but don't rule anything out. My revised expectations is still very soon July will make the diffrence. The dollar is dying. Commodities always go up in weak currency situations. The more money we print/throw at our problems that we dont have to begin with, the more the buying power of the cash in your pocket decrease. Protect yourself. Gold will outperform all, and oil will be second, although in contrast it won't be much of a close second. Oil you produce and destroy. gold can never be destoyed and will ALWAYS be money.
Tick tock tick tock. Keep the faith and pateince (and positions!) It's comming soon
-J
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