Stock Market November 2009

[davidslane]

I'm buying again.


Gold broke out big time this morning.

Silver has almost broken out.


IMF threatened to sell 400 tons of gold suppressing the price.

India snatched up 200 tons of that this morning allaying the fears of gold bulls.

 

And gold broke out on a very, very strong US dollar move this morning.

This is the decoupling I’ve been looking for.



The gold/silver mining stock charts look very, very bullish.
I'm buying back in big time into mid-cap gold and silver stocks.

[sunseeker]

Hi DSL

And gold broke out on a very, very strong US dollar move this morning.

This is the decoupling I’ve been looking for.



The gold/silver mining stock charts look very, very bullish.
I'm buying back in big time into mid-cap gold and silver stocks

.

SPOT ON..............
I have been doing likewise (plus a few junior producers too).

Good luck.

ATB 

[JDH]

I guess I'm out of sync on this one.  Last week when AEM.TO announced lousy results I bought (http://buy-high-sell-higher.com/forum/general-discussion/stock-market-october-2009-t1061.0.html;msg12057#msg12057; today with the big run up I sold; I like gold in the medium and long term, but I can't resist taking a profit when one is sitting there.  I still think we are in for general market weakness, that should give an even better entry point.

(Of course buying Agnico-Eagle last week is about the only correct call I've made in the last 2 years, so govern yourself accordingly). 

[Depleted]

JDH, I am with you, if the profit taking is there, take it, or risk losing it. Smart move. More attack capital for the next order of battle...The $TRAN Dow Transports are up 190 points, a suckers rally, I think todays events reflect everyone's greed and thought that Burlington Northern will save the economy, now that Warren Buffet has hopped onboard...Gee, I don't see General Electric saving the economy yet, either. GE at $18/share still looks mighty expensive, even when compared to a Birkshire share...
Abandon all hope, or risk the wrath of the black hole of Dooooooom...
The big flush hasn't come yet....The nearer term trader guys here stand to make a killing in this market, and the long term holders will be stuck, long term, hoping, no, praying for a miracle. 
Stress only becomes stress, if you allow it to happen..... ....Cheers, D

[sunseeker]

Hi JDH

I am with Depleted.
Take profits too soon. Accept losses early.
We have all done it at one time or another. Had a good profit and turned it into a loss.

Buy-High-Sell-Higher.
The “Mount Olympus” of investment forums.

YOU CAN ALWAYS CONSOLE YOURSELF WITH THE KNOWLEDGE THAT YOU’RE IN CHARGE OF THE BEST INVESTMENT FORUM ON THE NET.

ATB 

[sidewinder]

AEM gaps all the time.  Gaps tend to fill.  At some point   

[onlooker]

JDH, I am also with you.

I used today as an opportunity to get completely out of my gold / silver holdings.  I am now 100 percent in cash. 

From November 2008 to the present, I made over 70% of my original capital through the daily buying and selling of gold / silver stocks.  Though, I am a novice and very inefficient trader (have no technical charting skills), I was still able to make profits.  Why?  Because the gold / silver markets was and still is in bull market conditions.  And I think that I have beginner’s luck.  I suspect that my experience with the gold / silver markets is similar to your experience with the uranium market when it was red hot.

From your very excellent and relevant May 2, 2009 article, Sell in May and Go Away, and Luck.

You said:

Let me say that again: during a bull market, stocks go up. Pick any stock, and it will, on average, go up. If you pick the leading industry group (like uraniums in 2006), virtually any stock in that industry will go up. You have to be smart to get the industry right, but you have to be lucky to be buying during a bull market.

The opposite is also true. You can be the best technical analyst in the world, and you can pick the stock with the best RSI or MACD or stochastics, and you can buy it, and if a bear market starts, you will get killed.

I confess that I used margin to obtain this gain over such a short time period.  But, I swear will never use margin again.  There was one week when I fell into a financial crater, because I have brought my gold / silver mining stocks on margin.  Fortunately, they all went back up the following week, and I promptly sold them at a very small profit.   

I adhered to Depleted’s concept of sell, sell, sell; to take in whatever profits, no matter how small, that came my way.  To live another day.

If there is another meltdown, I will only buy physical gold and / or gold mining stocks.  I do not want to get caught up in the existing paper gold schemes.  So for me, no more CEF.a, GLD, SLV, etc...

[davidslane]

Funny, yesterday at the open I was 40% in cash down to my core gold/silver mining stock holdings.


After buying in yesterday and today, I'm now 10% in cash.


What I'm seeing is a gold and silver break out today (we'll have to see if it's confirmed tomorrow), a break out of the week long consolidation of the mining stocks, a bullish cup and handle forming on the mining stocks, and a huge decoupling today of precious metals from the US dollar.

This seems to me as the "Buy High" in the "Buy High Sell Higher" mantra.


Granted, I really need to see a break to new Oct highs for the mining stocks to be completely convinced, but I'm rolling the dice.



I don't trust the overall markets right now or any other sector but gold/silver mining stocks.
Any rallies in the global markets are head fakes. I'm just betting that if the general markets do go down, this time the gold/silver stocks won't necessarily follow (as was the case in the 1930's). Or at least nearly as badly.

[john77]

http://www.spectator.co.uk/print/business/5438893/golden-summit-or-false-horizon.thtml

Where can I find reports of mid to large cap gold producers cash cost per ounce?

[jjj000]

JDH, I am also with you.
From November 2008 to the present, I made over 70% of my original capital through the daily buying and selling of gold / silver stocks.

Onlooker - great job riding the wave, taking advice and applying it!!  It's really not as easy as it sounds, so congrats on your success.  Keep being shrewd and protect your capital, always trade like you are coming off a losing streak, and keep up the good work!!


david you are a brave man

Personally I could not be happier with my decision to stop trading equities, and just focus on futures.  Not that the manipulation or false fundamentals are any different or any less impactful... but I just don't have to worry about researching specific companies any more or any of that.  Saves me HOURS every day...

[Depleted]

Any Geologists out there? What is a good gram per ton, of mineralization? This was just sent to me...
See the Chart KSK.V Kiska Metals...is 106meters of 1.22g/ton of gold considered good?   
Here is the news release...Don't know how I got this news, the chart looks like it has been asleep for a year or so, and now just woke up...hmmm
I do not own any stock...Regards, Depleted 

KSKPR09-06

Vancouver, BC -- November 2, 2009: Kiska Metals Corporation, TSX-V:KSK,
("Kiska") is pleased to announce the discovery of a new mineralized
zone at the Island Mountain target, located approximately 23 kilometres
south of the Whistler deposit resource area. The first of five holes
completed in the 2009 drilling program returned 0.68 g/t gold over
382.9 metres. The hole returned an upper interval, 150.0 metres in
drilled length that averaged 0.72 g/t gold and a lower 106.9 metre
intersection from 280.0 metres to the end of the hole that averaged
1.22 g/t gold. Copper results are pending and will be announced when
received. Island Mountain represents a porphyry target distinct from
the Whistler deposit which hosts a NI43-101 compliant indicated
resource of 1.31 million ounces gold-equivalent and an inferred
resource of 4.44 million ounces gold-equivalent (see Appendix 1 for
details).
 
"This discovery at Island Mountain on our first hole of the program is
extremely encouraging," stated Jason Weber, President and CEO of Kiska.
"Gold grades appear to be getting stronger at depth, with the hole
ending in some the strongest gold mineralization encountered. This
suggests that there is excellent potential to expand upon these results
both at depth and laterally.  The 2009-2010 program at the Whistler
project is designed to test targets distal to the existing Whistler
resource to assess the overall potential of the greater Whistler
project area."

Island Mountain consists of Whistler-equivalent intrusive rocks,
anomalous copper and gold rock and soil geochemistry and associated
gossans covering a 2.5 by 4.0 kilometre area. The discovery hole
targeted a 150 metre diameter exposure of hydrothermal breccia at the
southern end of Island Mountain where surface rock samples have
returned values up to 1.19 g/t gold, 5.2 g/t silver and 0.2% copper.
Similar gold and copper bearing breccias are noted 600 metres northeast
and 500 metres southeast of the discovery hole, and reconnaissance soil
sampling extending 1.6 kilometres to the northeast from this hole are
strongly anomalous in copper and gold. Hole IM09-001 intersected two
gold bearing zones. The upper zone (150.0 metres averaging 0.72 g/t
gold), corresponding to the breccia targeted on surface, consists of an
actinolite-magnetite hydrothermal breccia with
pyrrhotite>pyrite>chalcopyrite. The lower gold-bearing zone (106.9
metres averaging 1.22 g/t gold), from 280.0 to the 386.9 metres (end of
hole) consists of pyrrhotite veins and vein halos of net textured
pyrrhotite surrounding veins. A second Island Mountain hole (IM09-002)
was completed 1.7 kilometres to the north of the first hole, returning
0.13 g/t gold over 202.3. Although anomalous in gold over its entire
length, the hole was lost due to technical reasons prior to reaching
target depth.


Island Mountain Diamond Drilling
IM09-001: Azimuth 085, Dip -50, Total Depth 386.9 m
>From (m) To (m) Length (m) Gold (g/t)
 4.0 386.9* 382.9 0.68
Including 44.0 194.0 150.0 0.72
and 280.0 386.9* 106.9 1.22
IM09-002: Azimuth 135, Dip -60, Total Depth 214.3 m
11.9 214.3 202.4* 0.13
* End of Hole

A total of five holes were completed in the current program. The three
remaining holes, for which any assay results have yet to be received,
targeted the Lightning, Digger and Raintree West targets, all of which
are in the Whistler Corridor (see Kiska website for a plan map
outlining the location of these holes). A 2008 hole at Raintree West,
located 1.5 kilometres east of the Whistler Deposit, returned 160
metres averaging 0.59g/t gold, 6.02g/t silver, 0.10% copper. Results
from the remaining three holes will be released when results are
received.

A further 15 holes are planned to test regional targets in the Whistler
corridor as part of a spring 2010 program. These holes will be targeted
on the basis of an Induced Polarization ("IP") geophysical survey (in
progress) as well as geological mapping, geochemistry and previously
collected airborne magnetic data. Follow up holes at Island Mountain
will be completed as soon as weather permits in the spring of 2010.

Induced Polarization Survey Update
Kiska is currently completing a large 3D and 2D IP survey of up to 340
line kilometers. The 2D portion of the survey was finished in September
whereas the 3D survey is approximately 70% complete with the finish
date estimated to be in the first week of December. IP geophysics is an
electrical geophysical technique well suited in detecting sub-surface
sulphide minerals such as copper-bearing chalcopyrite -- a mineral
closely associated with gold on the property.

About Kiska Metals Corp
Kiska Metals Corporation is a mineral exploration company with renowned
technical expertise and sizable exploration portfolio containing the
multi-million ounce Whistler gold deposit, numerous exciting early
stage exploration opportunities around the world and partnerships with
some of the world's largest and most successful gold and base metal
producers.  Kiska resulted from the merger of Rimfire Minerals
Corporation and Geoinformatics Exploration in August 2009.

Qualified Person Statement
The content of this release has been reviewed and approved by Mark
Baknes P. Geo., Vice President of Exploration of Kiska Metals
Corporation. Mr. Baknes is a Qualified Person as defined under the
terms of National Instrument 43-101. All drill core samples are
analysed at Alaska Assay Laboratories in Fairbanks, Alaska.


On behalf of Kiska Metals Corporation

"Jason Weber"

Jason Weber, P.Geo., President & CEO


CAUTIONARY STATEMENT: No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information
contained herein. This News Release includes certain "forward-looking
statements". Other than statements of historical fact, all statements
included in this release, including, without limitation, statements
regarding future plans and objectives of Kiska Metals Corporation, are
forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate, and actual results and future events could differ
materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from Kiska's
expectations are the risks detailed herein and from time to time in the
filings made by Kiska Metals Corporation with securities regulators.
Those filings can be found on the Internet at http://www.sedar.comand
http://www.sec.gov/edgar.


APPENDIX 1.
 Mineral Resource Statement for the Whistler Gold Deposit, Alaska
Prepared by SRK Consulting (Canada) Inc February 2008.
 Tonnes and Grades Total Contained Metal
Resource Category Tonnage (Mt) Gold (g/t) Silver (g/t) Copper (%) Gold
Eq3 g/t  Gold (Moz) Silver (Moz) Copper (Mlb) Gold Eq3 (Moz)
Indicated (open-pit1) 30 0.87 2.46 0.24 1.35 0.84 2.37 159 1.31
Total Indicated 30 0.87 2.46 0.24 1.35 0.84 2.37 159 1.31
Inferred (open-pit1) 123 0.59 2.07 0.19 0.98 2.33 8.19 515 3.86
Inferred (underground2) 11 1.16 3.55 0.24 1.66 0.41 1.26 58 0.59
Total Inferred4 134 0.64 2.18 0.20 1.05 2.74 9.44 573 4.44
1. Reported within a conceptual pit shell and based at a cut-off grade
of 0.3 g/t gold equivalent adjusted for metallurgical recovery.
2. Reported based on an underground bulk mining method using a cut-off
grade of 1.1 g/t gold equivalent adjusted for metallurgical recovery;
3. Total grade and Total Contained Metal gold equivalent grade and
ounces estimated based on equal full recoveries, $550 per ounce gold,
$8 per ounce silver and $1.50 per pound of copper;
4. Totals may vary due to rounding.

=======================================================================
Copyright (c) 2009 KISKA METALS CORPORATION (RFM)  All rights reserved.
 For more information visit our website at http://www.kiskametals.com/
or send mailto:info@kiskametals.com
Message sent on Mon Nov 2, 2009 at 8:06:02 AM Pacific Time
=======================================================================

[onlooker]

jjj000:  Thanks for the encouraging comments.   

I am really too inexperienced and chicken to continue on in any bear market.  I got to acquire more professional trading skills than quesstimating when to buy or sell precious metals stocks by looking at Kitco’s  24-hour spot charts for gold / silver.

[sidewinder]

I wil throw my 3 cents worth in the fray. 

Small company, thinly traded, recent breakout on higher than normal volume is not a good thing, it usually does not hold.  mailing out to prospective players trying to pump the stock I dont like.  I understand the need for marketing but, companies like this are ripe for pump and dump.  pounds in the ground are just estimates and unless and until extraction begins it is worthless until removed from the ground.

I honestly dont know what allure of these companies have.  I guess its everone's dream to buy the next radio shack or fledgling microsoft.  put down a dime and sell for hundreds.  That's not investing it's a crap shoot at best and more like putting cash into a bin and setting it on fire. 

It may become a viable mining operation but that's going to take a pile of money and in this business environment raising the capital is going to be difficult and come with a huge price diluting value and putting the risk on the  common shareholders.  If you are willing to wait what  is likely to be many years for some return on investment and are willing to loose the bulk of the money put in then, by all means, roll the dice. 

negative vibes are not always well recieved but I dont come here for group hugs 

[sunseeker]

I agree with Sidewinder.

I think the figure is 97% (not far off) of all new discoveries will never become a working mine.

In light of all the work that went into finding something in the first place, that's some failure rate.

ATB 

[sunseeker]

http://news.goldseek.com/TrendInvestor/1257345587.php

Amen

ATB