To: SliderOnTheBlack who wrote (20934 ) 3/2/2010 6:06:34 PM From: SliderOnTheBlack 20 Recommendations Read Replies (1) | Respond to of 50289 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