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Monthly Digger - January 2009


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Posted

Best wished too everybody

 

The verdict seems in

8 out of 12 righttranslation but a ( disappointing ?) new high on the way

I am fully invested in both investment and trading portfolios and may stay that way till I see red on this chart again

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Posted

"Happy New Year to all comrades in arms."

 

Minera Andes, an actual operating mine with cash flow, looks like it has been caught in the credit trap. Announcements of covenants defaults (actual and potential) never look good to the investing public. Their bank is Macquirie, which I beleive is an Aussie bunch who have leveraged infrastructure deals all over the world with local governments for the certainty of tolls. The bank is of course now seeing the magical tolls decrease as consumers around the world cut back. Hopefully, Minnera Andes will will catch a break form the bank, who claim their loan is fully secured by all assets of Moinera.

Looks like Novagold, in tht it has good assets but cash calls and venture funding required in their future projects may not be met.

Posted

Happy New Year to all comrades in arms.

 

RGLD shakes em all up. Unbelievable.

 

but EGO still makes it on my WHODATHUNK! list for 2008.

 

-Charm

 

 

 

All viable gold extracting business models are exhibiting or forming the same pattern.

 

The leaders are such for a reason. (extremely viable).

 

Even my crappy little juniors are approaching escape velocity.

 

 

I have never been more bullish on gold stocks.

 

There is just so much in their favor:

 

a- Priced at ridiculously low historical valuations (based on every metric).

b- Shortage of physical makes them an alternate.

c- Growing mistrust of GLD ETF transparency makes them an alternate.

d- Shortage of asset classes with any growth or even survival profile makes them an

alternate.

e- Nobody owns any. (either unaware or bloodied and beaten).(only buyers out there)

f- The industry is in shambles. Production falling, financing non-existent, projects being

moth-balled.(no-where to go but up)

g- Low cumulative market-cap makes for easy white-shoe targeting. (now in reverse).

h- Every gold-stock anal cyst, blogger, forum-poster or stupid Grinch who has been bullish in

2008 ate dirt. (a true bottom)

i- Vicious word-wide nationalism/socialism fueled by economic hardship is closing the

window on formerly safe mining venues. (less extraction land).

j- T/A working again, (market coming to its senses). Pay special note to the one year

weekly on your favorite grey-hound. (MACD is a an eye-popper)

k- Reading between lines reveals that miners don?t understand their own industry. (nobody

bothers you when you have leprosy). Imagine when management acquires a clue about

promotion and dissemination of critical industry supportive information.

l- Grinch says so.

m- How many f&cken letters are in the alphabet?

 

 

Happy new year indeed?

Posted

C.G.:

 

I see a slightly different pattern on SPX--but it corresponds with my short term XAU analysis.

 

A small decline and a rally into Inauguration Day.

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Posted

there are daily divergences in gld, gdx, xau, hui and gold. i dont think that this upwave is finished, however if one is trading its prudent to take some off the table. after all the xau/hui has doubled. i am looking @this wave being completed towards the end of the month. 1k for gold and xau=150=155. there could be a short term pause. over the next days. this wave is impulsive. meaning the trend is up

dharma

Posted

Jan. 2 - Today in M2M Doc said "looks like those 40-60% profits we took on gold stock picks in mid month after holding for 8-9 days were taken too early. They're all moving again. The one pick I left on is flying."

Posted
there are daily divergences in gld, gdx, xau, hui and gold. i dont think that this upwave is finished, however if one is trading its prudent to take some off the table. after all the xau/hui has doubled. i am looking @this wave being completed towards the end of the month. 1k for gold and xau=150=155. there could be a short term pause. over the next days. this wave is impulsive. meaning the trend is up

dharma

 

Yes! I was looking for about a week of this. TCK, FCX, IVN, DIG, CPN, X, $DJI all doing very well for me so far, as well as my junior gold like SMC, CXZ (notable moves in quite a few others .. many junior silvers!). I have no EGO, AUY, GDX or other big gold. After this short-move, I will be rotating back into them, moving my 401(k) from growth to stable, etc. However, we are so close that in general it's not worth being cute right now (If in any doubt, sit tight mode).

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