Tuesday, December 1, 2009

Gold and Silver - What a Day!

Some insane moves in smaller cap Gold stocks as Gold smashes into $1200/oz and silver now appears ready to challenge its all-time highs. The silver chart is particularly impressive. I posted before about the potential for a break up and out of the ascending triangle-type pattern (often a bearish pattern at the end of a move, but when it's not - look out!) in the price of silver and today is an attempt to smash through the upper channel boundary line with force. Here's an updated chart using the SLV ETF, as my stockcharts.com account doesn't provide intraday data for spot commodity prices:

This could easily turn into a runaway move to new all time highs. It will be exciting to watch, as silver is legendary for making insane moves to a final top. Though a false breakout is certainly a possibility, the odds favor silver "jumping the creek" here and busting to over $20.

The major Gold stock indices had good moves today and some of the juniors, as usual, made insane one day moves. Here are just a few I saw, either because I own or follow these stocks (I'm sure there are more...):

First up, Timmins [TMM.V] - drinks are on Chemical tonight...

Next up, Ecometals [EC.V] - THANK YOU, JOHN!

Here's Rainy River [RR.V]:

And Claude Resources [CGR]:

Andina Minerals [ADM.V]:

Almaden Minerals [AAU]:

Capital Gold [CGLD]:

Gold seemed due for a correction. It still does. All surprises in a strong bull move are to the upside. Today was no exception. I took profits in several stocks today that were significantly overbought and sold some short term calls as a hedge against my long term calls on Royal Gold (RGLD). Nothing can move in a straight line and if it does for too long, it simply means that when the correction finally does come it will be stronger and/or longer (alternatively, it means the move is over for good). Hope other Gold bulls had as good a day as I did today.

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