TH, good earnings out of NEM, might be an omen?
85 cents a share times four quarters divided into the share price and my goodness we're down to 13.5 times earnings...I read their conference call and it would appear they've done some of the right things....cleared hedges and managed to reduce costs. Maybe others have had similar successes that we'll be reading and hearing about soon...(Sinclair had NEM passed over as dead....)
Puplava and the boys are telling listeners to average down on their favorite juniors, that they warned of the top, that the HUI etc. will rise 70% by years end...Stimulus for such is a bit unclear, which returns me to the technicals and a downward swing move I see for gold to $800.
The assumption PUP and friends make is that everybody has an unending stream of fresh cash to put into the market. The word "stop" is never heard.
Short open interest in MFN has ballooned to 3.3 million shares!!! Concerns their production won't come on line as anticipated...Average down???? Like in GRS???
You say that you hear "some of the major houses using currency traders to manage their pog trading." Indeed, that's somewhat frightening. If the dollar manages to rally further (it was only up 1.5% basis the USD Index this week and GOLD cracked big time) a mere couple more percentage points for the USD Index and GOLD will be off CNBC as a discussion point and relegated to yesterday's news..Of course that will be a good thing...
The last couple of weeks we, or at least I, was reporting on Financialsense's concern for a dollar crisis this summer, and this week the buck pops a bit and gold dives...
Curious thing to me is nobody can really see how it will happen - what will be the fresh stimulus for such a "dollar crisis." But then it is the things out of the blue that nobody expects that prompt the big moves...However, betting on the appearance of a black swan, equity saving miracles, or a roque wave has never made me much money.
The charts tell me GOLD will break hard, probably on the no further easing sentiment and dollar strength. I'll look to buy some HL, GG, maybe AEM, and CEF in early MAY and ML.to for copper and MOLY... realizing it could be a long summer.... and that of course I could be wrong about the drop, but come on, what other forecast can be made; the charts look horrible!!!....
I suppose there's an Elliot Waver out there somewhere based on his many calculations, saying this is the just the time to buy for the big three of three coming that'll make us rich..Should he be right, I'll miss the first 10% at least. |
