Some interesting points ringing some bells!!!
I found this part of a larger article being a nice little number to go over!!
If these guys don't take advantage of the GOLD market this summer they will truly be the laughing stock of the CENTURY!!
NOT JUST MY OPINION, either.......
Prisoner
"FINALLY SOME MOVEMENT IN MINERS
Finally the precious metal mining stocks have picked themselves off the ground. A nice reversal pattern is evident on the weekly chart. Previous charts are shown in daily terms. Notice the W-shaped reversal pattern, better known as a ‘Reverse Head & Shoulders’ pattern of bullish type. The neckline lies at 460. The head has a bottom located at the 400 mark loosely determined. So in the intermediate term, expect a move to 520 on the reversal, surely enough to challenge the March high. Time must be spent with the right side action at the 440-460 ribbon of resistance. True to form, Wednesday saw a down move, which will build the right side shoulder. The next move over 460 on the HUI index will trigger a big upleg. A challenge toward the 520 high will come in a matter of weeks, not months. The reversal move will offer strong momentum for that challenge. Expect new breakout highs before September is over, probably far earlier, like later in July or in August. Last year in surprising fashion, powerful moves were seen in gold and the USDollar during the usually quiet early August timeframe. Expect the same this summer.
Notice the 20-week moving average has provided support in December 2007, in February, in March, and might again now. The ‘Head’ of the reversal pattern found support from the 50-week moving average this spring. Given that support from the 50wMA, one should expect strong support from the 20wMA this summer. An important final point must be made. During the springtime correction, the 20wMA never went below to cross the 50wMA. This implies the bull market in mining stocks remains intact. Try telling that to the Canadian Junior mining stocks though. Their day is coming. The low sentiment could mark its bottom. The July Hat Trick Letter will display the HUI versus S&P500 stock index ratio. It shows a tremendous reversal recently. In other words, as the mainstream ‘Paper-based’ stocks in the S&P stock index have suffered, the HUI mining stocks have advanced forward. The negative correlation is very favorable for precious metal investors involved with mining stocks.
In the last two months, some important points should be kept in mind. The bigger mining companies must replace depleted reserves. They are turning to the successful explorers, case in point being both Goldcorp and Barrick. They are not interested in acquisitions of mid-sized junior miners, but rather the explorers that possess expertise in exploration and discovery of valuable ore deposits. A bidding round of junior miners is not only likely, it is also guaranteed. My eye is set upon the hedge funds who are in many cases employing spread trades, going long the large mining stocks and going short the explorer speculative mining stocks. Expect hedge funds to take heavy losses. Some actually believe that Barrick is a ringleader behind providing capital not to fund their own mining operations, but to New York and London hedge funds to suppress the small gold mining firms. Others believe that Goldman Sachs has abused its managed GDX exchange traded fund, as they short the entire sector by shorting the entire index. One should consider the possibility that either or both the GLD or SLV exchange traded funds, managed by the cartel members JPMorgan and Barclays respectively, might be assisting in suppression of mining stocks in order to acquire them later for a price as cheap as a song. This pair of titans surely is shorting gold and silver with paper futures contracts. We live in a corrupt financial world. Its mafia dons reside in New York and London."
THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.
Jim Willie CB
Editor of the "HAT TRICK LETTER"
Hat Trick Letter
Prisoner has passed the hat for years now, been spot on folks.... That is bank!
