CONTRARIANTHINKER

Wave 3 of 3 may be winding up

Some of the larger cap miners look overbought technically. Also, gold and silver may want to back-test their breakouts from their respective triangles. Could we get one more smack-down? Of course. From some months back I was looking at a possible apex around 225 in the HUI for November. 225 seems a stretch price-wise now, but November still stands as a possible launch window. 

IMO it is time to be prepared for a sudden surge upwards. All along I saw the period 2001 onwards being like the 1970's. A 10 year bull market. If true, we are about half way through in time, the middle of the bull. Nowhere near half way through in gains though. 

3 of 3 is in the middle of the Elliot Wave formation. The next 5 years should see exponential gains in the HUI continue. As prices teeter higher, smaller less liquid speculative plays will start to explode. These are lottery tickets. However, because the micro-caps and juniors provide much more leverage than large caps, you get a bigger bang for your buck. In other words, for the same potential gain you can put down much less risk capital. Many micros are still languishing at very cheap levels. The funds are ignoring these stocks for now. Not much downside, very large possible gains. 

The trick is to buy several and simply hold until 2010. Poker players can hold a year or so longer for another double. At least, that's the theory. 

Nov 20th is next new moon (required for strike on Iran). Could that be a catalyst?

HUI:Gold is suggesting upside is likely. A confirmed breakout of the triangle would mean the PMs are headed much higher. The fact that Gold and Silver have broken out ahead of HUI:Gold is worrying of course. But to rise the PMs need a wall of worry. 

Gold should back-test this breakout - IRO 600...

A Couple of Lottery Tickets...

Durban Deep

Patagonia Gold (LSE)

Don't take my word for anything. Belief is the enemy of truth.

dB

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