InvestorsHub Logo

trader53

10/05/11 9:05 AM

#19291 RE: p56 #19290

Actually, it's very simple >

To give you an example of why SUGO is tied to the movement of Gold, I'll relate the theory to another industry group.

When coffee stocks were flying high, because coffee prices were surging higher, earlier in the year, you first saw the major big cap stocks have their move first, while at the same time, the lower tier small-cap stocks languished, doing nothing.

As soon as the big-cap stocks topped, along with the price of coffee, immediately a vast number of the lower tier small-cap stocks started to take-off in a very big way, moving from sub-penny to 0.40c and 0.80c in just a couple of months. Even one stock who was in Ch.11 and carried the Caveat-Emptor status, and who didn't have any shares-outstanding listed, went from sub-penny to 0.15c.

Basically, at the end of a bull phase in the big-cap issues, the lower tier stocks take-off.

This is what we have here with the Gold stocks.

Any stock out there right now, with ties to the metals, gold and silver ores, industry group, is moving with gold and silver prices.

You'll notice that when gold peaked in August, so did SUGO at 0.026c