Grandich: The bulk of the correction in the metals market is now behind us
Here's his May 11 real-time alert about a sharp correction coming:
Marketwatch, May 11, 2006:
Gold, silver futures rally to quarter-century highs
UPDATE -
From The Desk of Peter Grandich May 11, 2006 1:00 PM EDT
"... an overbought/oversold indicator of mine that I've used since before the 1987 stock market crash, has given the most overbought reading EVER for both copper and gold."
"I'm going to suggest that the risk in gold, silver and copper is now equal to, or much higher than, the reward in these markets for the near term. The long awaited sharp correction is within hours or days at most."
He was right, as gold has already corrected over 10% from its high very quickly. Hopefully, he's right this time as well:
marketwatch.com
Indeed, "the bulk of the correction in the metals market is now behind us," with the exception of copper, which "has a ways to go to the downside," said Peter Grandich, editor of the Grandich Letter.
He expects gold and silver to "bounce strongly early next week."
I like what he had to say about junior mining stocks in his latest alert (http://www.grandich.com/docs/alertGL_05-19-06.pdf ):
Mining and Exploration Shares –
I said in my May 11th issue, “…the second half of 2006, and especially 2007, is setting up to be the speculative frenzy most have been patiently waiting for.”
While shares in general can decline another 10%-15%, the bulk of the froth has been removed,
especially in the junior resource market. In fact, I do believe the next 60-90 days could offer
one of the best entry points into the junior market since the bottom in 2001-2002. I’m highly
prejudiced since part of my livelihood is made within that industry, but it’s my most humble
opinion. |
