Yearly Archives: 2014

Shorts Covering In Resource Sector Rally

Shorts Covering In Resource Sector Rally
The time to accumulate undervalued resource assets is waning as prices rebound rapidly. The time to buy is when they are priced at major lows with massive short positions. Now the public is concerned about declining gold prices. But that concern may be coming to an end. The shorts may have already begun to cover in the junior mining resource sector as M&A increases.
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Technicals Finally Reflecting Fundamentals In Resource Sector With Bullish Breakouts

Technicals Finally Reflecting Fundamentals In Resource Sector With Bullish Breakouts
It may seem like a confusing time to be a mining investor, but Jeb Handwerger, of Gold Stock Trades, insists it doesn't take a rocket scientist. "Stick to the fundamentals," he says. "The technicals will eventually reflect the fundamentals." In this interview withThe Mining Report from early December, Handwerger talks about what companies have the right foundation to shine after the market dusts itself off and starts to climb. As Jeb said in the interview, "Some people are thinking about leaving the sector. That's not the right approach. Gains could be exponential in the coming weeks. The right approach is to rotate into situations that will outperform, even if gold and silver stay flat. Stick to advisors who are finding the most compelling situations. Corrections take longer than people expect—the longer and the deeper the base, the more powerful the eventual upswing. It could be huge with the record amount of cash on the sidelines and the large number of shorts who may need to cover their position." Since this interview was published the Venture Index has jumped close to 100 points and broke the 200 day moving average.
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Western Canada’s Alberta May Be The Strongest Economy in the World

Western Canada’s Alberta May Be The Strongest Economy in the World
Currently, there is an explosion of economic growth in Western Canada most notably Alberta. Due to the increased demand for energy coming from Asia, Western Canada may be one of the best economies in the world right now. Unemployed Americans and Europeans with technical skills are already finding high paying jobs. Alberta's economy based on oil and gas is one of the strongest with a low unemployment rate and over 3% real GDP growth. Over the next decade, hundreds of billions of dollars will be invested to build LNG facilities and major pipelines in Western Canada in order to transport petroleum to the emerging economies in Asia. There are already five major pipeline proposals. In addition, see all of the proposed LNG facilities and pipelines that should be built over the next decade.
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Resource Sector Starts 2014 With A Boom Higher: TSX Venture Up 11 Consecutive Days

Resource Sector Starts 2014 With A Boom Higher: TSX Venture Up 11 Consecutive Days
Eventually, these downturns end in the resource sector and when they do massive rebounds begin. When you see record shorts like we are seeing now in gold it usually signals a major bullish turning point imminently ahead. The taper is not a signal to sell gold but to possibly buy. Inflation should start to pick up. Notice gold and silver are still holding the summer 2013 lows and the TSX Venture is breaking above the 200 day moving average. The TSX Venture is up 11 straight days. The small miners are a leading indicator and may be signaling the smart money is expecting gold to hold the $1200 bottom. This technical reversal may forecast increased interest of smart capital into the sector. This improving technical landscape in our featured companies and the TSX Venture closing above the 200 day moving average while gold and silver is basing may signify that the recent taper and improving economy may actually be the beginning of a coming boom to the entire resource complex.
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TSX Venture Moves Above 200 Day Moving Average For First Time In Three Years

TSX Venture Moves Above 200 Day Moving Average For First Time In Three Years
The TSX Venture is making a bullish move above the 200 day moving average. This is the first weekly move above this key technical level in more than three years. This may signal that the vicious downtrend in the resource sector may be ending.Watch uranium as a bellwether for the revival of the sector. The Fukushima Disaster really was the major event to cause panic at the top in 2011. A bullish golden crossover of the 50 and 200 day moving average in the uranium price may be signaling a bullish turnaround in the entire commodity complex. This is the uranium prices third attempt at a breakout. The third time is usually a charm in the financial markets. Look for a breakout on Uranium Participation Corp at $5.77.
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This $1 Stock On The NYSE-MKT Gives You Graphite, Tungsten and Rare Earth Exposure

This $1 Stock On The NYSE-MKT Gives You Graphite, Tungsten and Rare Earth Exposure
The world is carefully monitoring the ties between Japan and China as tensions have created conflict in the Asian Region. The issue is over islands in the South-East China Sea where China is in dispute with many nations. Japan is seeking the assistance from the U.S. and other Asian nations to help with a situation which could spiral out of control. The Chinese have a new political leadership which may be demonstrating a more nationalistic approach. The U.S. plays a critical role as they may be concerned about China’s growing power in the region. Japan is the world’s third largest economy and Abe’s government is investing billions into automakers, infrastructure and high tech. This will require increased amounts of the critical rare earths that are in complete control of the Chinese. China, who supplies 99% of the heavy rare earths, just announced that they will cut export quotas again. These metals are critical for our most advanced military equipment such as cruise missiles, stealth aviation and helicopter blades. It is also critical for high efficiency lighting, green energy, wind turbines and hybrid cars. This junior will be the only miner on NYSE-MKT with exposure to critical rare earths and graphite.
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