September 1, 2013 | By Tekoa Da Silva
Due to the significance of the past few week’s market action, today’s Sunday note to blog subscribers is posted below…
Greetings and Good Sunday,
Catching most traders and investors by surprise this week was a mild sell-off in gold and sharp sell-down in the miners.
Technical gold trader Gary Savage noted in weekend commentary that these “[Small] declines need to make traders freak out in order to reset sentiment and prepare for the next leg up.” He further noted that this small decline suggests next week we may see a, “Very scary $30-$40 crash day—that will bring gold back down to [its] support zone [at $1350].”
Following that potential crash day according to Gary, gold may be positioned for a run at $1523.
Another item of interest during the week, was a commentary issued by US Global Investors CEO Frank Holmes, who indicated that investors looking for mining company exposure should look for, “Companies [that] have good CEO’s, good geologists out there exploring, or very cost conscientious executives who are running an operation…They’re the companies you have to really focus on.”
As recent newcomers are shaken out of the market over the next few days, it should tear open buying opportunities in those index companies, ahead of their next assault higher.
However, today’s “buying opportunities” last for single days (and sometimes only hours), so we must keep a sharp eye on the market and strike while the iron is hot. Limit buy orders are very helpful in that regard.
As a special thank you for supporting my work, I’d like to offer you access to those companies contained in the Da Silva ”Legendary Mine Builders” Index—at $50-OFF the regular price. To get a copy of that report at $50-OFF, simply click HERE.
And as a final note for the week—Resource Billionaires Eric Sprott and Ned Goodman will be delivering speeches at the upcoming Toronto Resource Investment Conference. Your editor will be in attendance on Sept. 13th, and will be participating in a live video interview at 12:00 p.m. that day.
Attendance to the show is highly recommended, as these two men will be sharing the “nuggets of wisdom” accumulated throughout their careers. It may also be the only time these two great stewards of capital ever share the same podium again.
That’s all for now. Best in health, wealth, and happiness in the new week ahead!
Tekoa Da Silva
Bull Market Thinking