Update Sunday morning 01/17/10
My bags are packed and my bear suit is pressed but I have yet to leave the key on the counter at the “Don’t Worry” Be Happy” Hotel. Some may ask with almost two feet out the door, why not just hit the check out button on the TV and return back to where I belong?
In a business where many times you’re only as good as your last call, it’s going to be extremely difficult to surpass or match my last two market calls. My biggest sell recommendation ever came just two days after the all-time high in DJIA and my go long buy came just one day before the bottom last March. So unless I timed the ultimate top within hours, someone will surely say I’m slipping-Lol!
I promise this blog will be the first to note when I tell the desk “sayonara”.
The correction/consolidation in gold is nearing an end and while we can’t rule out one more dip below $1,100, I continue to believe the surprises in the gold market remain almost exclusively to the upside.
Given the fact that people are literally knocking themselves over in declaring their new-found love for the U.S. Dollar, the U.S. Dollar Index has seen barely a blip up. Bullish sentiment has gone from the low single digits to the majority yet the dollar has barely budge, net-net. While there’s still a window of opportunity for a decent bear market rally, time is not on the dollar bull’s side.
I continue to like going short 10-30yr. Treasuries here and on any further rallies.
I remain dead neutral on oil and gas.
- Northern Dynasty Minerals presentation in NYC last week
- Taseko Mines – What can I say? I sung for the fences on this one last year and the news this past week has led this to being a homerun. A teleconference is available this Tuesday. I remain a strong holder and believe a double digit share price in the next 12-24 months is not a “pipe dream.”
- Continental Minerals – I was forwarded this commentary on KMK and thought some would find it worthy.
- Nevsun Resources – Barring further sanctions and/or a significant decline in gold and copper prices, I don’t see much more downside risk in NSU. I do think however, a cheap takeover bid now around $4 could steal the company that otherwise couldn’t have happened before the U.N. sanctions. This is very high risk and only speculators/gamblers fully prepared to lose a significant part of their investment should be in this situation now.
- Evolving Gold – While my comments on BNN Friday are sufficient, I hope to make a further comment on EVG early in the week. Here’s a commentary from EVG after the news release.
Finally, a commentary on Donner Metals
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.