Thursday, June 25, 2009

CHINA SYNDROME - revisited

Head and shoulders (chart pattern)Image via Wikipedia



After a Scan and Screen gave me 125 Buy Criteria Selections, I had to stop and think as to what it really meant. For me, "CHINA SYNDROME" is one likely out of many scenario's, as there is little plausible explanation for any of this volatile behavior, save huge injections of cash. Today in this total reversal of advances and declines, as a mirror image of a previous day, I find this activity like a Bi-Polar mind on crack.

Last night, Asia was off mariginally in all markets and Europe was up marginally while the US premarket was down, and then took off. Not to mention that money managers are scared to death being left out of any Zimbawae hyper-inflation rally.
Gold and the US Dollar advancing together show continuing strength in GOLD.

So gold rallies, and the market continues its crazy behavior completing what I think is a huge Head and Shoulders, which I think will come to an end probably Mid-July.

Of the US stocks I would consider to use briefly, would be UIS, XRA, NXG, PAL, MOT, OC, LL, CAG, DRC, OIS, WDC, CPO, OI, KMB, AEM, BG.

Gold stocks I'd consider or hold are IAG, EGO, AGT, PZG, NEM, KGC and its warrants.

Others I see as potentially rewarding but risky, are AHD, EGY, PGH.

Mr. Nasti's temporary [ IMO ] halt in its downmove, aside, I think we will see a reversal, and still am in a short posture with a number of stocks and options.

DG

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