From Stewart Thompson

TYHEE GOLD CORP

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striketheroot2

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From Stewart Thompson

posted on Oct 14, 2009 03:31PM

13. I'm not a junior gold stock person, meaning I'm not interested in this deal or that one. But perhaps that's part of the total package needed to make large money in the juniors. I don't really care about what one company is doing or where. Don't take that the wrong way. I play sectors. Major market moves. There are many in the gold community who follow the action at individual companies, like my friend "The Golden Surveyor". But I want to take you back a bit in time. To the hi-tech bubble. Remember how the golf ball advisors had their alphabet soup of tech stocks? You had to cover the micro-sectors to really make big money, right? Question: Did all that micro-selection make you a lot of money?

14. I believe we are on the doorstep of a major surge of institutional dollars into gold. Some are already entering the gold room now. I believe the Dow is rising on a combination of failed short covering, modest institutional buying, and smart money placing tiny insurance bets that a mini-hyperinflation is possible. A failure of CIT group could send the Dow to new lows and possibly even wreck the massive head and shoulders continuation pattern. So there is real risk, but there always is real risk of massive price decline in all markets, at all times. Gold would have to penetrate the right shoulder around 850 to ruin the technical pattern. That's over $200 down from here. Possible, yes. Likely, no.

15. I've long stated that the gold juniors would shine only when the US dollar institutional lake began moving into gold, not just into foreign currencies. I gave $1000 as the rough launchpad where I expected to see the lake start the gold geyser erruption. Assuming there are no new massive OTCD (OTC derivatives) surprises, I think we're at that point right now. I seriously believe there is more leverage in junior gold stocks to gold bullion, right now, than there is with futures contracts. That's the power, that's the tool that is sitting right in front of you in your gold toolbox. Jim Sinclair, the only real bank family member of the gold community, has predicted (knows?) that gold futures markets (the COMEX) will be turned into cash-only markets with no leverage. I'll add that if YOU are long gold futures on the day that is announced by surprise, you'll have the mother of all margin calls.

16. Junior gold stocks are offering you leverage with no margin calls. Now, what happens if there is a CIT group failure, or some other catastrophic event the banksters may have planned for the stock market, and your juniors all melt away again?

17. Answer: Then you have the opportunity to do what you should have done last year; be prepared to buy those stocks all the way to zero. Don't spend all your risk capital today.

18. I spoke to Van Eck funds yesterday. John Van Eck began the company in 1955. I want you to think carefully about this man. He has a Harvard MBA. The period of 1955-1968 was arguably the absolute pinnacle of American economic performance, and John started a growth fund with perfect timing, in that year 1955.

19. Then in 1968 he started the first American gold fund. He moved the bulk of the assets from his growth fund into the gold fund. Again, perfect timing to catch the gold bull market of 1968-1980.

20. Now Van Eck funds, as some in the community know, is starting the Van Eck Gold Juniors ETF. I could be wrong, but I believe the Van Eck timing, again, is absolutely perfect! The ultimate investment at the ultimate time has been filed with the securities commission, the weightings and stocks are chosen, it's just a matter of waiting for the Gman to approve it. I see no reason for it not being approved. Van Eck runs the GDX seniors/intermediates gold stocks ETF. We're not talking about Bozo the Gold Clown here, Van Eck is a real pro and I believe he's about to hit the ultimate home run.

21. As the juniors go on a tear that could make the high-tech bull market look like a bear, I believe "stock picking" will become even more irrelevant with the junior golds that it was with the high techs. The gold juniors ETF could see hedge fund participation. If so, all bets are literally off as to the upside, when you are talking about funds leveraging their investments in junior golds at 20 to 1, 30 to 1, 50 to 1. And more.

22. Last week I asked subscribers to send me their favourite gold juniors and I'd run the technicals on them and post them on my website. I got overwhelmed. I posted all thru the weekend and I'm still only partway done. The bottom line is that the technical situations on almost all the gold monthly charts is the exact opposite of what I saw when they crashed last year. Basis the monthly charts, last year showed one major sell signal after another. What I'm seeing now, especially basis the TRIX indicator that is too boring for most writers and investors to follow, what I'm seeing are major multi-YEAR buy signals! It is absolutely critical that you get out of the mindset of trying to flip your junior golds on some company-related announcement. Use the information from the various junior gold writers to pick the companies to buy, but after that, all those upside pops that seem big now, will be too small to see on the chart. Don't use the advice of the junior gold writers to sell, to "manage" your juniors portfolio. You'll wreck it. As the banksters' grand plan of creating worldwide USDollar panic is played out to perfection, the whole juniors section will launch upside in a move too big to miss out on. That panic is also designed to crash the US bond market, which would add an even bigger engine to the gold bull market. The bond market didn't disintegrate in the 1970s gold bull until near the end. I believe it will be the same this time.

23. Don't focus on some negative mining report and ignore billions of dollars of institutional money flow panic-buying the juniors!