Gold Breaks out over Trend on high volume!

Goombarh Flash 26,  May 20th, 2011

Something's up folks...GLD ETF is recovering and is up above trend line on strong volume, see following chart:

Note the double bottoms, and the higher volume on push upwards.  Also GLD is now above my drawn white trend line. 

GLD is leading the GDX and HUI this morning, as the SPX is down.  Gold equities need a good general market to move higher.

For myself, I am holding  Goldcorp warrants that I hope to exit from next week. 

Also, May 25th next week is gold options expiry so expect volatility.

Until next time,

Marco G.

http://goombarhsedge.blogspot.com/

http://seekingalpha.com/author/marco-g/articles

Triple Bottom for Gold Stocks

Goombarh 62 - May 17, 2011

Good day,

Will someone please tell me what is going on?

Gold is down yet the HUI index and the GDX index of large gold stocks are bottoming and showing strength in possibly moving up. 

THIS SURE AS HECK LOOKS LIKE A TRIPLE BOTTOM OR A HEAD AND SHOULDERS BOTTOM.  -   THEREFORE LOOK FOR UPSIDE FOR GOOD GOLD STOCKS.

Can it be that all the bearishness is already priced into the markets?  Are the big funds accumulating Gold stocks now?  How can I make use of this information?  Is the bottom in for now?  Or is this the sell in May and go away until fall?

Disclosure:  I am holding only a select few juniors and Goldcorp warrants.

I can not make any good trading strategy, other than as previous:

·         select exploration juniors

·         good stocks at good prices (GBG & SLX)

·         best of the best gold stocks (RLGD, FNV, & GG)

·         Aggies - DAG

Until next time,

Marco G.

http://goombarhsedge.blogspot.com/

http://seekingalpha.com/author/marco-g/articles

Goldcorp Warrants (GG.ws, TSX:G.wt.g)

Goombarh Flash 18,  Feb 25th, 2011

===============================================

Good Morning,

Though I have been a critic of Goldcorp, I am not against making money on this glamor stock.  They released terrific results yesterday, and as I have said previously, they are doing the right things with divesting low grade Osisko and buy high grade Andean.

Note the chart above, their soon expiring warrants are seriously lagging the stock, probably funds divesting after  year end with close expiry in June 9th, 2011.  There are 8 million of these critters and they have become seriously leveraged to the stock price ~ 16. Goldcorp warrants (GG.WS, TSX: G.wt.G) should move with the stock price upwards and with the Gold price upwards and maybe peak in May before expiry in June. Pricing is sub $3 presently and strike price is $45.75 Cdn which is the price right now.  Therefore, no value in warrant except as an option should the price move upwards beyond $49 Cdn, then these warrants become breakeven.  Beyond $49, each $1 stock moves, the warrant should move $1 also giving a 16 to 1 leverage.

This is definitely risky as if GG doesn't move up, then you lose your whole investment.  However if GG moves to $62, $52, then you have a double.  I have bought and am holding.

Until next time,

Marco G.

http://goombarhsedge.blogspot.com/