It must be March...
Nothing like a nice vacation to recharge the batteries,
although if I was a government worker in France, I'd
still have 4 weeks left.
Anyway... time to get back to business (although it's going
to take a couple of days to shakeout all the beach sand).
On the correction back in February, I thought we were setting
up for a nice seasonal, March to May rally in gold and PM stock...
Message 26290437
Message #20934 from SliderOnTheBlack at 2/1/2010 2:00:08 PM
The March to May call options are looking sweet here, and
the deep out of the money put sales like free money.
Selling out of the money puts as pullbacks reach technical
support levels has been a literal license to print money.
While HUI 377 had a minor technical breech (369.90 closing
low), we had strong buying on each of the three days the HUI
Gold Bugs Index closed below 377, with intra-day trading on
all three days hitting at least HUI 390.
And George Soros' "Davos diss" of gold turned out to be
exactly what we thought it was, a blatant shakeout attempt
so he and the Red Shield boys could add to positions.
The recent strength in the US dollar has not come from
economic, or fiscal strength, but merely from being the
lesser of other fiat evils.
That the old resistance level of $1,000 gold has now held as
new support, speaks loudest of all. And with sustained gold
prices over $1,000 and with energy costs having fallen
dramatically from their 2008 peaks - the well managed
companies will be printing money.
You saw what NEM's earnings report did for them into a weak tape.
At $1100 gold and $17 silver, the well managed companies
are literally printing money, and EARNINGS are about to
become the catalyst for the next leg up in this cycle.
I think we're going to see some 7-8% dividend payers
before this cycle is over.
SOTB |
