Silver leading & CDE credit upgrade coming?
I still believe $16 silver will trigger a credit upgrade for
CDE & pop it to $20. We just need to get there...
Message 25842279
Message #18482 from SliderOnTheBlack at 8/6/2009 9:42:37 AM
Silver still leading...
CDE now up nearly 70% in less than a month, off it's June/July
$10 double bottom
Looks like someone is anticipating a credit upgrade.
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HL should have done a reverse split too, as many institutions
can not own sub $5 stocks and for individual investors at
$2-$3 it's been an unmarginable stock.
Soon, hopefully that will be a moot point.
High cost/high debt producers should get the most lift here
as they're most leveraged to POG/POS.
SOTB
PS: Don't be afraid of buying some paper/GLD puts, as
insurance on your physical as we march higher.
Lots of lift here from China promoting the buying of gold
and silver on TV ads to it's citizenry... along with a
some major media props to gold, and a big push from
the Zeigarnik effect of the usual suspects.
Give 'em a loose leash here and let 'em run, but keep raising
stops and above all remember, there must alway be a "story"
and a new "herd" in order to sell high.
Lots of stories, rumor, and innuendo pushing gold, and history
has been very consistent on how that's played out.
Personally, I'd like to see better confirmation of this run
with a much weaker dollar than what we're seeing.
Also, Volcker & Summers haven't gone away, and they are
neither deaf, nor dumb to golds move here.
The story is that the deal China cut with the Fed is that
Bernanke must stop monetizing Treasuries. And that monetization
has been THE major driver for higher gold.
If the Fed stops buying it's own Treasuries, and let's the
market naturally raise rates to compensate risk...that
becomes part of the Fed's exit strategy, and could set up
gold's correction.
Remember, when the trade seems too easy - it usually is.
Scale out of euphoria just as you would scale into fear. |
