Tischendorf Letter...update
posted on
Feb 05, 2010 12:14AM
Edit this title from the Fast Facts Section
by Olivier on February 4, 2010
What a difference a few days make. Gold couldn’t take out the lower high and wasn’t able to hold above the recent lows. Technically speaking we are in a downtrend as gold printed lower lows. A look at the big picture still makes me believe we are experiencing an orderly correction. Thus, I would still label the last two months’ action as a consolidation or sideways pattern.
Up-to-date USD$ Gold Price Chart on my public list.
That being said, especially the big cap mining stocks don’t look good and have way too much overhead resistance. Some mid tier stocks like LSG.TO – Lakeshore Gold (merger with WTM.TO – West Timminis Mining) just look plain ugly. This is the perfect time to be very conservative with your long exposure and to see which ones will be the outperforming stocks during the next up-move. As I’ve stated in the past, I believe this down move will separate the wheat from the chaff.
The stocks that are displaying great strength and ’salmon like behaviour’ during down moves are the ones to keep an eye on. They offer the best odds to be the new leaders when the markets turn. Here are a few that come to mind:
I may sound like a broken record but I am not advocating to go long aggressively. I am being very conservative with my overall market exposure. Do not trade because you crave the action. The goal is to make money. Not more not less.