Friday, April 17, 2009

Correction HO ?


So the question becomes? Is the data depicted on the chart, showing us a TOP Area or a Bottom Area? Hint -> The area in gold, occupies the TOP of the chart area now.

Can we experience something that will save the market from a sharp drop? Yes, we can have a flat correction. Looking at the data, I'd say we are in an extended top, rather than a flat correction. The drop beginning January, took TWO [ 2 ] full calendar months to run its course. The rally before that took 1 Month bottom to top.
This last rally took, so far 6 weeks, so nothing is out of balance here, yet.

Therefore, IMO, a correction, decline or consolidation could take 1-2 mo's whether this is a bull or bear market. Lets look at how the Media is talking up this rally, and yet again, priming the public to EXPECT that the market could rally next week, on the back of this last advance. I'd have to refer back to the above chart. Could the market rally next week ? Could it go somewhere? Yes. Could it go to 10.5K from here? Not likely, IMO, before a correction / consolidation.

What did I do this week? Sold merger candidates, and other stocks that ran on news.

What sectors did I buy this week? Natural Gas, Coal & Uranium. Sectors I sold: Energy and Precious Metals.

Whats in your wallet?

Good Luck All,


Funny tho

even tho I dont have high hopes for serious gold movements and many many PM stocks are showing negatively, some good ones, IMO, keep showing up on my nightly scans.

Dont take this to mean I like NXG, cause I really have no love for this guy, even tho I first met it in 1967, and made money, probably my first bux I made on a PM stock.

Anyway, in no particular order, in the past 24 hours, I had the following PM stocks show up on my scans: GRS, SVM, AZK, NXG.

Now to make it more confusing, these two consumer stocks are showing up and have been for some time : BC, MFG. Boat stocks. Go figure.

As I have told others, I have no love lost btwixt myself and the financials and anyone that wants can play with them. The two that have shown up most frequently and consistently on my scans for the last two months are: MF & OCN. Do as you will, you have been warned.


OK so the streets ARE NOT paved with gold,

yes you and I know that ! ! But we have Silvercorp and Gammon Gold. Certainly GRS has struggled. SVM also. Yet my VIRAL shows gold struggling long into the summer.

It has been an open question for at least two years which juniors would survive, which had a shot at becoming something, and which would go belly up or be taken over.

Logic would dictate these guys are here to play, maybe not stay, but to play.
Time after time they show up scan-wise, after their Big run's of yesteryear. The question is "What have they done for you lately?" Were you of a mind to accumulate monthly or use a geometric pricing system like Robert Lichellio's, I'd then say, if I did it, these two would be on my plate.

To quote a cliched commercial, "Whats in your wallet?"

To change subject slightly to: "THE CORRECTION". Has anyone forgotten that this BEAR MARKET is guilty until it acquits itself?

I cant attribute that "It is running out of steam.", referring to The RALLY. I can say that rotation is occurring and the clock is running on this rally, and thus the CORRECTION becomes more incumbent each passing day. I can also say that fewer and fewer issues are taking part in the upticks, as well as fewer bullish formations being created. Bottom LINE: Keep your stops in place, and your SCALE BUYS,in place also. Go fishing, go knit a pair of gloves or dig in the garden. do NOT obsess about this market! ! ! This market will do what it needs to do, and you will have positioned yourself.

Good Luck