Thursday, October 16, 2008

There's blood in the streets...

Today was my dream day. Gold stocks went on deep discount and so I waded into the bloodbath today and picked up options on gold stocks for cheap. Heavy purchasing of calls on Goldcorp [GG] and Royal Gold [RGLD] today (my overly greedy/miserly Yamana Gold [AUY] offer didn't fill). Was today the bottom? I don't know. We could go lower. However, I think we are VERY close to the bottom and you get to a certain point where trying to time THE exact bottom is not worth the effort. Nobody is that good with any consistency.

I just want to get the meat of this coming gold stock rally, which should be good for 50-100% gain on the actual stocks and 200% or more for the options. I've still got a little powder dry in case I need to double down, but I'm feeling really good about an entry point today near the lows. We should bottom out for sure before the month is over and the rally in gold stocks should last until at least mid-April. Though this next intermediate rally probably won't be the biggest leg of the coming cyclical gold stock bull phase, which is within the context of a secular gold bull market, it should still be profitable and easy to make money on.

Like my Gina says: "IT'S TIME TO SHUT IT DOWN." I'm hunting for profits amid the carnage, knowing Rome is burning around us.

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