The Chinese and Russians were some of the largest acquirers of physical gold. Also large hedge funds some managed by industry giants such as Paulson, Soros, Rogers and Einhorn began buying ETF's and junior miners. This led to a parabolic and overbought move in precious metals, which I cautioned my readers about in the referenced article above. It should be noted a few days after this article was published silver topped at $50 and gold rolled over a few months later at $1900.
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Will Year-End Tax-Loss Selling Have an Impact on Gold, Silver Investors?
What has been completely overlooked or not mentioned during this sizable run up in stock market profits, including the precious metals sector, is the imminent advent of tax-loss selling. Every year around this time, as sure as snow falls in Vermont, more than ever, there are reasons why this unmentioned event is apt to at…
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GDX Chart Analysis 6-9-09
On a previous update I mentioned not to get too excited by buying the miners when they are overextended. Look for strength as the mining index will come back to support which was previous resistance at 37.50. Notice the upward sloping trendline that will act as support as well. Coincidentally it appears as the 20…
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Molybdenum Companies Increasing Production
Thompson Creek came out with a news item today which states that it will increase production of molybdenum due to the improved market conditions. This is what we saw here a few months ago in the charts of Thompson Creek and General Moly. We believe that this is an opportune time to get into commodities…
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New Gold(NGD) Second Chance to Purchase
NGD came to its 20 day moving average and is closing at the high of the day reversing from being down most of the day shaking out weak hands. Buy at 2.65.
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Stock Market Update. Important Week for DOW. 6-6-09
Major resistance is being approached for the DOW. Notice the trendline and resistance where it failed three times in December of 08. Overhead resistance and lack of volume on the recent rally tells us to be careful and to be ready for a shorting opportunity. Stay Tuned! Make sure you have trailing stops set up.
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China Buying Gold
China is buying gold like crazy! http://www.chinamining.org/News/2009-06-08/1244423563d25443.html
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Interesting Stock Chart on China
Notice the thick blue line and how FXI (25 largest and most liquid China Stocks) crosses that trendline on the point and figure chart. This shows us the strength of the most leading emerging market and how this market had impacted this rally for the past three months since the March bottom. It is clear…
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NGD Update 6-6-09
Notice the break through the trendlines which is confirmed on our point and figure chart. Everything looks OK at the moment. Be prepared for a breakout of this bull flag pattern as NGD approaches its 20 day moving average.
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Resistance on GDX (Gold Miner ETF)
We wanted to show a 2 year chart on GDX gold miner etf. There is major resistance at the $45 dollar area which needs to be broken. In order to do that I would not be surprised of a short term correction to the $39 area. This is where I would wait so that the…
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