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November 13, 2009 / Jeb

Indexes Breaking Into New Highs On Low Volume

Although major market indexes made a classic whipsaw pattern where they broke trendlines and moving average support only to reverse higher, the volume to push this move has been poor.  I am careful in this market and am definitely not on margin in a market with extremely poor price volume confirmation.

The major news these past couple of weeks has been the dovish beliefs of most central banks.  High unemployment, sluggish economy coupled with a currency devaluation, inflation is our economic reality at the moment.  Gold is extremely strong yet overbought, major market indexes are breaking into new highs on low volume so I am reviewing carefully my favorite opportunities.

Looking at the chart of BQI Oilsands Quest I believe it is presenting a secondary buy point after an initial breakout.  It happens quite often that breakout stocks offer second chances.  This is where the real market investors add to positions.  I am looking for a reversal and support to show up after its first pullback to the 50 day moving average.  Today’s close at the low is concerning.

DNN Denison broke through the 200 day moving average which was its support but closed near a previous low.

This is the point where our stocks need to make a stand.



Leave a Comment
  1. Trond / Nov 13 2009 10:38 pm

    What du you think of UXG. It has not followed the gold price up, but is now on support. In Nevada they’ll drill for another month before snow stops it, but are they on deep level or only on shallow level where the last discovery was made? (Maybe McEwen has given too much interviews in the media, ‘worn out’?)

    • Anticipate Opportunities / Nov 15 2009 9:11 pm

      They haven’t drilled close to the depth of Barrick. Investors don’t realize that El Gallo in Mexico is a major silver discovery. They will start having results as they are putting a lot of effort there this year.

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