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PMS Daily Digest for Wetnoseday, August 20


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I own shares in a gold junior listed on the pinks in England. It was suspended from trading on April 25. It had been coming down with volume prior to its suspension. Some directors had resigned and there was speculation whether there really was as much gold in the ground as had been promised in the prospectus. Well... today the shares resumed trading. Have a look at the chart and tell me whether you think I should sell immediately. I haven't been able to find any news or press release on Bullion Resources today except this little note:

 

NOTICE 20/08/2003 7:00am RESTORATION OF TRADING ON AIM BULLION RESOURCES PLC The trading on AIM for the under-mentioned securities was temporarily suspended. The annual report and accounts having been published, the suspension is lifted from 20/08/2003 7:00am.

 

http://uk.finance.yahoo.com/q?s=BLO.L&d=c&...1y&l=on&z=m&q=b

post-11-1061381156_thumb.png

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We need the gold contract to close above the descending resistance line for some real explosive action. If POG refuses to break out... the party over at XAU and HUI may be short lived. I think we'll see a repeat of the last symmetrical triangle. When it broke out... boy it really moved.

 

$GOLD within it's CONTEXT:

 

The metal:

 

http://stockcharts.com/def/servlet/SC.web?c=$GOLD,uu[w,a]dallyyay[de][pc50!c21!f][vc60][iut!Uj[$spx]!Ue12,26,9]&pref=G

 

The stocks:

 

http://stockcharts.com/def/servlet/SC.web?c=FSAGX,uu[w,a]dallyyay[de][pc50!c21!c11!f][vc60][iut!Uj[$spx]!Ue12,26,9!Ua2,21,1!Lyb20,2.0]&pref=G

 

The relationship:

 

http://stockcharts.com/def/servlet/SC.web?c=fsagx:$GOLD,uu[w,a]dalanyay[de][pd20,2][vc60][iut!Ud20!Ue12,26,9]&pref=G

 

 

The TRIANGLES are not the same setup....back in Dec '02 the stocks were at a low and their valuation vs $GOLD was at a low.

 

Currently....you see just the opposite. This implies a break to the downside for $GOLD?

 

At the same time...we're near the strongest seasonal trend of the year for $GOLD?

 

What gives first?

 

Price & valuation cycles say DOWN for $GOLD....seasonals say more UP for $GOLD & gold stocks?

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Yesterday a splendid day, with a new high for the HUI. The previousely mentioned target area of 190-207 has now become an immediate prospect. (within a week from now) There'll be down or consolidation days as well, as has been the case over the last week, all due to increased volatility.

post-11-1061381451_thumb.png

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I'm too sleepy to even think now - my son woke me at 3am and I couldn't get back to sleep - now I'm paying for it.

 

so pardon me if I just lurk - maybe good time to check out financialsense.com and do a little reading today.

Go ahead, vet. Take it easy...try your new piano or something :grin:

 

I'm sure you'll get back soon enough...

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