Posted: 16 Feb 2010 05:35 PM PST
While I’m quite pleased with gold’s performance, I believe we need two consecutive closes above $1,125 to truly feel the correction is now fully behind us. Because you could find a needle in a haystack faster than a true gold bull (up until today anyway), the overwhelming number of gold bears and weak-knee bulls are not likely to throw in the towel just yet. The next few days’ worth of trading should be a good two-way battle. Trading between $1,100 and $1,125 for several days or a couple of weeks won’t be a bad thing. Stay tuned.
As noted repeatedly, I ‘m not looking for a collapse (or anything like one) in the U.S. stock market but rather a market that goes no where’s fast up or down “net” over time. Many people have questioned why although outright bearish on U.S. equities, why I’m not going short? I believe the action the last couple of weeks is what we can expect for months and years to come. Unless one is literally an hour or day trader, there’s just not going to be many lengthy and large scale moves up or down that one can profit from being short or long. In fact, I think spread traders stand the best chance for the foreseeable future.
Per last Friday’s show with George, it appears Zijin Mining and Continental Minerals have a “volunteer” pool agreement in regards to the possibility of Zijin buying more shares. I remain very bullish on KMK being a takeover target.
I was both honored and humbled by a guest on BNN today. His most kind words were expressed at the 5:55 minute mark.
Did the Saudi’s suggest more drastic action in their coy response?
Donner Metals continues to have very good news on the drill front.
Timmins Gold is transitioning from a pure exploration company to an emerging producer with plenty of exploration upside potential. The expectation is this can lead to a revaluation that over the next 12 -24 months can provide triple-digit return on the share price.
I will be on BNN’s “Market Call” Monday, March 8th at 1PM EST.
On Major Moves, Grandich has been very right and not only saved many investors fortunes, but expanded them dramatically. On November 3, 2007 at the MoneyTalks Survival Conference, Peter Grandich of the Grandich Letter warned that “an unprecedented economic tsunami will hit American beginning in 2008”. Peter advised publicly to short the US market two days from the top in October, 2007 and stayed short until the last week of October, 2008. He began to buy stocks in March 7th, 2009. He also bought oil and oil related investments near the lows after the dive from $147.
….go to visit Peter’s Website.