Re: Strange
in response to
by
posted on
Jan 10, 2009 03:04AM
Creating value through Exploration and Development in the Sierra Madre of Mexico
I don't know about Bull's indicators. But the mining stocks were indicating it weeks ago with volume and the moving averages crossing. So, they had to suppress it again.
I think gold is being held back in part by the need to rescue JP Morgan from his silver short. Notice the trading in silver. Often running opposite gold lately (odd), then falling back once it hits a key resistance level. They sucker in the longs with upward movement, and bat it down to get longs to sell contracts back at temporarily distressed prices. The beach ball is allowed to rise from the water just enough to provide hope. Hope is fueling the manipulators on all these false breakouts.
If you trade a key stock like Pan-Am, Silver Wheaton, or Silver Standard, which respond best in silver, this has been happening almost every day. I keep most of my position for the big move that is coming, and a small amount to profit from movement around what I believe to be the key suppression level, which has moved from $10 in silver to $10.80 to $11.50 in the last few months. The silver etf is bulging.
The one stock we should not trade is Kimber, or many of the other juniors that are beat up.
For now, the trend is our friend.
Oil has worked out well, and keeps paying "Kimber dividends".