AEM Ready for New Highs

AEM has traced out a multi year saucer then started a handle in the shape of a bull flag.  That flag has broken higher today.  I am now expecting a multi month move to 120 area.  I added to my positions with 10 AEM FEB 2011 85 calls.  When it breaks to new highs I will double this call position.

Silver is riding higher on the 20 EMA

Silver still looks good to me and am still long all of my silver juniors and my final 5 AGQ calls, plus 30 SLV calls.  SLV is giving me some clarity on when to add to, and when I will sell my call positions. 

Referencing my SLV ST chart, you can see my buy more line and my sell out line. 

Whee on CREE

I have been trading CREE long ever since the first bottom of this double bottom, for the most part very profitably.  CREE has shown some textbook TA patterns (Double bottom, Bull Flags, channel trends) all with a rising RSI.  Last week I sold CREE after its run to 64 on Wednesday.  I bought back in this morning at 62.50 and now expect a run to the gap fill.  I own Jan 65 calls, so I have time if it decides to run to the bottom of the channel again.


For you day traders, CREE sells off alot at the open then reverses. 

http://www.arum-geld-gold.blogspot.com/

No Carnivale for RIO

The steel stocks look weak, and this miner is a big supplier to this industry.  It broke the 50 EMA today, and if it closes below that level, I am placing a short on it.

Mawson - a potential blockbuster

Mawson is a small mining holding company that has stumbled into a couple of huge finds.  The concentrations of the metals and minerals, are unheard of.  Please read from a release from the company.

"The Company is exploring at Rompas in Finland, a new discovery with BONANZA GOLD where samples up to 12,800 g/t (373 oz/ton) gold and 43.6% uranium have been identified. In addition, the Company is exploring for gold and copper in the highly prospective Cordillera of Peru, with a focus on a new high grade gold discovery at Alto Quemado.

Mawson is a leading Scandinavian uranium exploration company, with advanced projects in Sweden and Finland. As the European Union moves to reduce its reliance on carbon-based energy sources and continues to debate energy security, Mawson is well positioned to provide Europe with the option to fuel its future. Areva NC of France holds 11% of the Company and provides Mawson with an active technical partner.

With a strong cash position and a multi-jurisdiction European and South American portfolio, Mawson is ideally positioned to enhance its status as a leader in the uranium and gold industries."

What else is interesting to me is the capital structure is in strong hands, with low share count.  This means to me, that retracements will be shallow, as only weak speculators will sell.  Having said that, the move on this news has aleady happened, and I will wait for either a retrace to the 50 EMA, or allow the 50 to catch up.

Uranium prices are impervious to external events as the Chinese must secure fuels for their ever growing power plants.

A Gold Crown I Do Not Want

Gold is tracing out a classic head and shoulders pattern.  It is something I am watching with great interest.  According to Bulkowski, if the rise into this pattern is steep, the move down is more violent/deeper and if the neckline is upwardly sloping, the pattern has more validity.  But what bothers me, is it looks too pat, tracing right at fib lines, into a seasonal strong period and with uncertainty brewing internationally, suspect it is a shakeout not a decline.  I will look for a failure at the 50 EMA, and a retrace back to failing before I aggressively hedge/short my positions.

Happy Thanksgiving

I will be travelling with family until Friday, Happy Thankgiving all.