Why am I greedy right now? Well, gold stock fundamentals are kicking in all around now that oil and commodities are tamed and then there is Huey, with risk/reward shown here. Risk to 250 and reward to who knows where, but it is way higher than 520. The kicker is that if we can break the last vestige of an uptrend the commodity gurus will begin throwing in the towel publicly. This will be a good thing.
In fact, we have the makings of a bullish mania here once the dust settles, which could take quite a while. You know the old saying about junior gold stocks being a perpetual call on gold? Well, if you own cashed up ones with balance sheets holding no rude surprises and quality resources, that applies here. Another bonus is that the quality mid tier and major miners are going on sale as well. How do you ride Nasdaq from 1,500 to 5,000 and get rich? This is how. There could well be a mega bubble in gold stocks out there on the horizon. Think I'm crazy?
Meanwhile, HUI will try to hold on to the 'higher low' scenario from last August. But I think it would be mega bullish - to bottom feeders anyway - to get an err, event over with here and now down to the 260's accompanied by a stock market broken soufflé and oil to under $100.
Edit (11:24) There is something else broken out there folks. Read Bob Hoye's most recent Pivotal Events excerpt. Gold is outperforming and that has been the play in the miners since forever. Hoye is looking ahead to a major buying opportunity as he knows this is the counter cyclical play. Liquidity is drying up and the swamp is being drained. There is a lot of garbage in the muck. Toxins too. Be careful out there and remain focused. If you don't know for sure why you are a precious metals guy or girl, you are in trouble. If you know your fundamentals and they were not predicated upon China and the commodity mania, you stay cool and get a little greedy. If it turns out those fundamentals are correct you one day sell your miners to the highest bidder, say at Nasdaq 4500 or so (don't want to get too greedy and pick the exact top).
PS: Thank you again John for the thoughtful donation. With the way things have gone lately I wouldn't even think of pitching it. Now, at HUI 600 somewhere down the road... different story. ;-)
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