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Don’t expect any major moves in the next couple shortened trading weeks

December 18, 2014

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Discussion
49 Comments
    Dec 18, 2014 18:20 PM

    Doc,

    thanks for the updates on your holding. Do you see Iamgold coming back down to fill its weekly gap at the very least? It sits at 2.11. I sure hope you are right doc as i really want one more shot at lower prices. Im holding a big bag but dont want to be caught with it while prices escape me.

      Dec 18, 2014 18:07 PM

      Glen; I love the chart on IAG. There are other PM charts starting to look similar. I love charts with trading ranges since I’ll go in big time in the next 2 weeks if we get sell offs to the bottom of the ranges. Then I can get out if prices move lower out of the range with minimal losses. 50 day MAs on some of these PMs are starting to turn up.

        Dec 18, 2014 18:47 PM

        Doc,

        I have a good feeling we move higher into january. Then a small dip and continue higher. Today is the first day I feel that i have not felt in a very long time that I could get shares cheaper. This market looks like it getting ready for takeoff and maybe just maybe, the precious metals family will have a gift from santa and not wall street. Iamgold is showing tremendous strength with its closing and bullish candle patterns. The volume looks bullish when looking at the candles and bollinger bands.

        Matt im bullish again 🙂

    Dec 18, 2014 18:20 PM

    I agree Richard. I believe we are going to get a breakout in PM’s come January. It may have already begun for many.

      Dec 18, 2014 18:41 PM

      Bird I think he meant breakdown into january and then up. Looking at the charts its possible but I guess the million dollar question will be a higher low or a lower low in gold when it does correct?

        Dec 18, 2014 18:00 PM

        I heard that too. I am agreeing that January will see a move up. In my case I think it will come very early in the New Year.

      Dec 18, 2014 18:48 PM

      Birdman you are absolutely correct. Iamgold is showing this precisely.

    Dec 18, 2014 18:25 PM

    DOC, are you encourage about the mining stocks(GDX, GDXJ)? It could be bullish for GLD?

      Dec 18, 2014 18:10 PM

      Yes I am. These ETFs are scrapping the bottom of the monthly lower BBs so the odds are very small for a sudden further drop in these ETFs.

    Dec 18, 2014 18:52 PM

    What’s happening in the stocks markets is completely iniquitous. It is criminal, scandalous.

    How the F can someone explain this complete melt up in stocks any other way.

    From the commencement on Wednesday of the FOMC meeting to present stocks are literally going through the roof. This is frankly diabolical what they are doing.

    We are in the last days

      Dec 18, 2014 18:57 PM

      We are still inside the rising trend channel James. I don’t know that spikes like this matter all that much in the big picture since we have not broken above nor below the major trend line in any significant way.

      Dec 18, 2014 18:58 PM

      I mean to say this is just noise in an otherwise orderly ascent in the same way a minor down day is also not all that important.

      Dec 18, 2014 18:36 PM

      All you have to do is big time short!

    Dec 18, 2014 18:00 PM

    Yellen is nothing but a pimp, a vassal of wall st. They have her on a string to do their bidding and in return she is granted honorary status. She is a leech.

    This is demonic.

    Satan tempted the Lord with all the kingdoms of the world.

    These kingdoms are in satans possession and these players are merely doing his bidding

      Dec 18, 2014 18:07 PM

      I don’t want to be irritating James but everyone knows the script by now. If not you have been asleep for a few years. You are just tilting at windmills.

    Dec 18, 2014 18:09 PM

    Switzerland imposes negative interest rates
    I hope the Swiss get everything they voted for.

    Oil is crashing.

    If our economy is so good why don’t they raise the damn interest rates?

    She is a serpent with serpentine speech.

      Dec 18, 2014 18:14 PM

      It’s been awhile since we saw a rally of this magnitude, James. It’s just huge.

      Dec 18, 2014 18:35 PM

      Answer: Governments and home owners will go broke in short order if they do.

    Dec 18, 2014 18:10 PM

    I know the script

    Tilting at windmills – good one

    I am howling at the moon

    I am in a foul mood.

    Good talking to you birdman

      Dec 18, 2014 18:17 PM

      Ha Ha! I figured you might get a laugh over that. You know what they say about picking our battles don’t you? And that little expression “Don’t fight the Fed”?….This is a great time for a review because it is wasted energy to howl when it would be so much easier to just play along and make a buck. How many times has this same setup repeated already in one form or another?

    Dec 18, 2014 18:53 PM

    Matt im sure your very aware by now that Iamgold is my biggest holder. If and that is a big if I expect a 10-12 bagger in 1-2 years time. The entry point now is higher then its peers as it seems to have taken off on its own. I just don’t see it coming back down towards the 2.50 or below on the canadian exchange.

    Do you a good recommendation/stock that is solid and mid-cap like iamgold that has yet to make its move and is at the lower end of the channel? Looking for good management/cash on hand/very little to no debt/ Great board of directors/great jurisdiction “canada/us/mexico?

    Would really like to see what you have. Just through me one and I will take a look.

    Thanks in advance. One that you think can do an 8-10 bagger lol.

      Dec 18, 2014 18:13 PM

      Hi Doc, as the MUX I bought @.93 on Tues is way up, today I bought some MDW@.65. It will be interesting to see if they do better than SLW when gold goes to 3K and silver to 100. And you were right about the flu shot as the CDC has already admitted that this year’s shot is not a match for the strain going around, just like last year and the year before. Glad I didn’t get the shot.
      BB

    ALEXANDER(OWL_……………GREAT NEWSLETTER………………………J……………….

      Dec 18, 2014 18:38 PM

      It is getting better and better.

      Thanks

      Again I ask, FSU OR OREGON?

    Dan
    Dec 18, 2014 18:39 PM

    For anyone interested in gold, silver companies, check out GGI (Girabaldi). Excellent share structure, no dilution since 2009. Very active in Mexico right now with an interesting property Rodadero. Results pending after a very successful first round of drilling. Leading international silver and gold compant requested and unsolicited visit to the property twice already. Shaping up like a silver gold district with base metals as well.

    Dec 18, 2014 18:31 PM

    Awesome pick-Dan, great management, also holds approx. 1 mil. PZG shares, and major stakeholder in the Sheslay Valley!!

    Dec 18, 2014 18:09 PM

    WOW. If anyone does not believe that gold is being suppressed for a 2014 finish below $1200, you must be blind or crazy.

    Dec 18, 2014 18:22 PM
      Dec 19, 2014 19:31 AM

      What do you think AXU will sell for when silver is 100 ?

        Dec 19, 2014 19:45 AM

        $50 or more, no problem.

          Dec 19, 2014 19:47 AM

          Then I’ll hang on to the AXU i bought @2.

            Dec 19, 2014 19:21 AM

            I sure would.

            Dec 19, 2014 19:59 AM

            I just bought TGD@.95.

            Dec 19, 2014 19:15 AM

            That’s a good price for a good company with good cashflow and great upside.

            Dec 19, 2014 19:09 AM

            And TGD just announced a great purchase yesterday that may almost double their production in a couple of years with only increasing their float by 10%.

    Dec 18, 2014 18:54 PM

    Doc.
    Question i got to ask you this big pictures of gold and dollar. I heard one paticular analyst said that gold top at 2011 as 9 year cycle top . it will bounce here and go down again in the future. also for dollar will be steady and a little bit down then go up big time again. I got confused by him. Would you explain to us more precisely due to your charts please? thank you. I mean a long term big picture.

    Tom
    Dec 19, 2014 19:51 AM

    Isn’t this the perfect time to manipulate the sh#@t of the gold price down? Remember the creation of the FED??!!! LEST WE FORGET!!! These guys are heartless!!

      Dec 19, 2014 19:24 AM

      You really think this is manipulation, Tom? We are at the tail end of a three and a half year correction and poised to move higher in the New Year. We should expect choppiness at this stage. I actually think we bottomed in early November and since then the trend has been more or less back up. Seriously, this is the first time in a long, long time I have felt optimism about gold and silver again.

    Dec 19, 2014 19:30 AM

    Bird,

    Would you not agree that for miners to go to da moon equities need to come off there high horse? Money and velocity need to come in to miners from equities. Ask yourself where is that money currently that comes in a wave and entered metals in 2008/2009? Im of the opinion it’s in the dow jones and needs to move this way.

      Dec 19, 2014 19:37 AM

      Generally yes, Glen. Fortunately there are no hard and fast rules that apply at all times in the markets. For example gold can and does rise with the dollar periodically.

      In this particular case we have a situation where gold has already seen substantial drops over a long period of time and the miners have been wallowing for years. Maybe that is signaling the end of a long bear market in US equities.

      We can’t know for sure when there will be a shift from one asset class to another even though that is a rough rule of thumb to follow but we do know that markets are forward looking and it has become clear that selected miners are already on the rise.

      That tells me some capital is already been allocated to the sector (gold equities) in advance of a general equities downturn. That is a good setup for those of us who follow the trend and should be monitored closely.

      Secondly, the time for mine equities to rally WITH the stock market may have arrived.

      Another consideration is that there is a known economic benefit to all energy intensive resource extraction that is materializing now in the form of substantially lower energy costs.

      This one aspect has not yet caught on with the investment community as the benefits have not yet trickled through but we should anticipate that some miners will start showing bottom line improvements in the next quarter that will make them a little more enticing.

      Should gold rally at such a time there can be a compounding effect that will relaunch the sector more generally and so that is what I am watching for. A rising tide lifts all boats as they say.

      I happen to believe that January will see the precious metal sector begin to rise again and all the more so because it is my view the dollar is heavily overbought and ready to retrace against a backdrop where everyone and his dog is long dollars and short euro.

      In other words, this is an excellent time (in my opinion) to acquire gold but more to the point this is the time when the miners themselves (selectively) will start to shine once again. In my own case, I am green lighting this as a time to begin buying ahead of the herd.

    Dec 19, 2014 19:36 AM

    Argonaut Gold still has an almost 9% short position as of Dec 15th. Maybe a squeeze is to come soon if it has not started already IMHO.

    http://stockcharts.com/h-sc/ui?s=AR.TO

      Dec 19, 2014 19:44 AM

      Full disclosure; I am beginning to nibble at AR.

        Dec 19, 2014 19:36 AM

        Thanks Dan, I really like the look or AR and am going to take a much closer look at it. This might be the kind of play that Glennfidish was looking for. I won’t tell him if you don’t! 😉

          Dec 19, 2014 19:42 AM

          Haha. This is circular cause you tipped me to it in the first place. I just checked their short on Stockwatch. Thanks.

            Dec 19, 2014 19:41 AM

            I did? Lol… I never owned it until today! Thank YOU.

          Dec 19, 2014 19:07 AM

          TGL has me interested too. Not much of a short position though.

          http://stockcharts.com/h-sc/ui?s=TGL.TO