Not long ago, the Gold and precious metals market looked ready to surprise some of us Gold Bulls and do a face plant into the concrete. Just as things started to look dicey, we got faked-out and called for a move into cash (http://markostake.blogspot.com/2010/03/gold-market-update-time-to-go-to-cash.html).
Now it looks like Gold has pulled off a stunningly successful "double-reverse". For those not familiar with football parlance, a double-reverse is a manoeuver designed to switch directions twice in one play. First, the play has you looking right, then left, then right again. If you don't know its coming, you get faked out of your shoes.
And so it appears with Gold and Precious Metals stocks. Just as it looked like we would get a completely surprising market reversal to the downside, the market held, gathered strength and now all signs point to a renewal of the upside hyperbolic mania that we were looking for all along.
All the market did was what it was SUPPOSED to do. Like an illusionist, it diverted our attention while it pulled of its seemingly amazing trick.
The GOOD news is that re-entry here with Gold near the $1,125-$1,130 level leaves PLENTY of upside, especially if our longer-term projection of $5,000 is met. The important thing is not to fall in love with either a market outlook or individual postions and stay with the "weight of the evidence". That evidence now is screaming BUY again.
Especially telling was the sudden surge in the Gold Bugs index on Thursday, also known as the HUI. The HUI surged a whopping 5% indicating an investor stampede back into precious metals stocks. In additon, some key chart patterns were resolved in a bullish manner. Can't fight the tape!
So, now that the market has successfully faked us out, it's time to re-enter. We did a series, a couple of weeks back on a number of promising stocks and we would suggest a review of these if you're interested in selecting some appropriate candidates. The links are provided below.
The individual stock reviews of Vista Gold, Tara Minerals, Samex Mining, Seabridge Gold, Hecla Mining, and ECU Silver Mining can be accessed by clicking on the following links:
In the days ahead, we'll cover more individual stocks of interest.
For now, ignore last week's man behind the curtain, and listen to THIS WEEK'S man behind the curtain!
There's a great opportunity looming ahead of us and lot's of time to board the train and enjoy a great ride.
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