Replies to post #4920 on Banro Corp. fka BAA

[TeamTOC]

It wasn't just BAA I noticed. BAA is the only miner I know, but the last I checked VGZ, AUY and LSG were all down 2-5%. GSS was the only one I saw that was up, but if I recall it was by less than 1%. Nonetheless, I'm just as interested in Tech's analysis.

[nutsyprofessor]

That's how the stock market works i.e. it goes up, it goes down...it does this day after day with trends sometimes going up, sometimes going down, and sometimes just sideways, until something meaningful happens :) ...welcome to the world of commodities and stocks.

[investorwisdom]

Considering the long downtrend in the rear view mirror, don't you think it's a small victory to tread water above the 50 day moving average? Lets not get ahead of our-self, we still need the directors to be re-elected on Friday.....

[Techamental Logic]

Hi abc1938! I believe what we witnessed after lunch has a lot more to do with the TSX index than it had to do with gold or Banro in particular.

Before I go too far everyone please don't make any trading decisions based on what I say without talking to a real financial adviser. Also if anyone sees any problems (large or small) with anything I say definitely let me know. LOL I (sometimes unfortunately...sometimes not) do trade on the information I'm sharing here.

The TSX started out strong this morning but then took a beating in the afternoon session. Canadian traders are a nervous bunch (j/k Canadian traders are cool). The main factor is like our NYSE, NASDAQ and S&P 500 the TSX is near record levels. Many traders rightfully wonder how long it can last. Worldwide we are staring inflation straight in the eyes.

The Asian markets are already grappling with inflation and have been for over a year, that is what sparked the huge spike in Chinese gold buying.

If my guess is right the miners will bounce right back tomorrow because gold was unaffected! Gold also may jump and how high depends on the GDP number reported by the US. Also...the TSX traders who sold because of inflation fears will be looking at gold! The US GDP comes out 8:30 tomorrow morning along with Durable Good Orders. I highly recommend that anyone with the ability to watch CNBC at 8:30AM tomorrow check out Rick Santelli who should be a blast to watch.

The reason I expect gold and miners to bounce right back tomorrow is that unlike many of the stocks on the TSX they will actually benefit from inflation! In fact I expect commodities across the board to jump tomorrow and the energy sector will probably be #2 after the precious metals sector.

What could hurt gold? Well...the worst case scenario would be super great US numbers and then the Fed saying there is no inflation in sight so they are raising interest rates and then the US dollar jumps big. Even in this world of make believe numbers that won't happen.

Bottom line...I think all of this had to do with traders taking gains on the TSX with inflation worries top on their list and I expect miners to jump right back tomorrow because while they went down today gold did not!