Happy Bids,
As a matter of fact, I picked up a few hundred shares of Getchel Gold today (GGO). This appears to me to be an optimal place to add shares of not only gold mining companies, but other natural rescource companies who have been slaughtered during the plummeting of the CRB.
When the CRB hit 195 in September and held, Bobby Beara and i came to the conclusion that the bottom was in. We saw the CRB rally strongly for the next month or so, and have since seen it pulling back. I believe that rally was a wave 1 rally in a brand new bull market for commodities, and we've simply pulled back during the last few weeks in a wave 2 pullback. Keep in mind that wave 2 should not take go beyond wave 1's beginning, so this means the closer you buy commodities to the 195 area, the closer you are to what should be the absolute bottom.
Look at oil. It bottomed at around 10.75 months ago, rallied to 17+, and now is back in a wave 2 retest of wave 1's beginning. Sure enough, the upper 10's area is holding strongly, in the face of all the naysayers who are calling for 9.5 a barrel. I think this makes Oil service stocks a good buy at this time as well. Can anyone find a single commodity that has broken it's 52 week lows in the past few weeks, and is making new lows? If not, that means we're in a spectacular buying zone for these commodities & stocks.
This bullish position on gold and other commodities and natural resource stocks will remain intact as long as 195 is not broken on the CRB.
Regards,
David |
