06/22/06 - TraderMike: GoldStocks Turn the Corner!
The last time we saw downtrends in the XAU and HUI reverse their course,both the XAU/gld and HUI/gld ratios snapped back. This was back inMarch after the March bottom. History is now repeating itself right infront of our eyes and that means we can expect to see gold stocks marchhigher over the next few weeks. The next resistance point on the XAU isin the 145-155 area. We'll likely get there sometime during July, thenconsolidate for a few weeks, before breaking out again at some point inAugust to launch the next big bull run.
Yesterday's action was what I was looking for back in May. If you canremember, the XAU and HUI consolidated and began to trade in a verynarrow range. It looked like it was going to break out. Instead bothtouched their resistance points and then fell straight down. BUT, thistime we finally got the key breakout. And not only that, it has comeafter last week's bottom.
When we look back at all of this action a year from now we'll be able topoint to June the fourteenth as a key day for gold stocks. The daybefore, gold stocks and the metal closed on lows. Then on the fourteenthboth gapped up on the open. Gold then plunged around 40 points while theXAU held up and finished strong going in to the close. That was the typeof positive action you see at major bottoms for gold stocks. Knowing thatthis happened last week makes the downside very limited for getting innow or continuing to hold.
Top10 Blue Chip Stocks With Market Caps Above $500 Million
Yamana Gold(AMEX: AUY, Toronto: YRI) 5/05/06 $11.25
Glamis Gold(NYSE: GLG) 5/22/06 $33.55
Bema Gold(AMEX: BGO) 5/22/06 $4.75
Agnico Eagle(NYSE: AEM) 5/22/06 $32.45
NovaGold(AMEX: NG, Tortonto: NG) 5/30/06 $14.00
Southern Copper(NYSE: PCU) yields 12.90% at entry point 602/06$87.60
Meridian Gold(NYSE: MDG) 6/02/06 $32.25
Eldorado(AMEX: EGO) 6/13/06 $4.21
Tanzanian Royalty Exploration(AMEX: TRE) 6/13/06 $6.40
Top10 Emerging Growth Stocks With Market Caps Below $500 Million
Paramount Gold Mining(OTC: PGDP) 4/24/06 $3.40
Eaglecrest Explorations(Vancouver: EEL) 4/26/06 $0.60
Battle Mountain Gold(OTCBB: BMGX) 4/27/06 $0.58
Blue Pearl Minig(Toronto: BLE) 5/09/06 $3.20
Alhambra Resources(Vancouver: ALH) 5/10/06 $2.78
Gold Reserve(AMEX: GRZ, Toronto: GRZ) 5/30/06 $7.27
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