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Monthly Digger - September 2008


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Does everyone have that sinking feeling?

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No, I was looking forward to this. I expect to have more funds available for investment starting around now. And I'll be waiting patiently until I see the whites of their eyes. We know where this ends. Between here and there is for entertainment purposes only. B)

 

I'm like a coed naked wrestler in jello. Everything I like is on sale. :)

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I was repelled from here a while back due to someone's arrogance. But due to the low morale these days, I thought I'd post my projection for the miners.

 

The miners are a couple of weeks into a new 16-week cycle. Downside pressure will most likely prevail as the 14-month and 8-year cycles bottom towards the end of the year. The gold bull should resume by December at the latest.

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"Gold Money's James Turk says he's seen it all before:

The present situation reminds me of August 1976, just weeks before the Democratic Convention confirmed Jimmy Carter as that party's presidential candidate. Gold slid down to $100 per ounce even as the inflation and economic outlooks were worsening. Gold looked dirt-cheap back then even though its price had risen three-fold from just a few years before.

"By the end of 1976, gold had climbed 32.3% from its August low. By the end of Carter's presidency four years later, gold climbed more than eight-fold. "

http://www.marketwatch.com/news/story/radi...9-33C69600330F}

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HUI:

 

I am long and slightly into margin.

 

So I am not happy with this chart.

 

MACD hasn't thrown off any indication of positive divergence (though it need not do so in an abc correction).

 

Tuesday's possie D is not enough unless the market reverses. It was enough for me to add a small postion to GG and KGC which are both under water.

 

Stochastics appears to be rolling over.

 

A 2nd wave will often re-visit its prior support level. Note that Tuesday's intra-day lows took out August's lows on HUI. Thus, it can count as a 5 wave move.

 

Ugh!

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