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