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