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astragtc77
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Author is a part time trader whom trades various exchanges like NASDAQ, NYSE, STI and Hang Seng. His trading style and techniques are a mix of self taught and from various sources and includes a mix of swing and breakout and short term day trading.
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  • 2 Feb : No more golden days for Gold Miner stocks : AUY, ABX, GDX, HL 2 comments
    Feb 2, 2010 2:51 AM | about stocks: AUY, HL, GDX, ABX

    The gold mining stocks has been showing weakness since the first sign of strengthening US dollars. Most of them are trading below 200DMA and trying to regain ground back above the 200DMA support. However, as evident from the lower volume accompanying the last white candlestick yesterday, i don think there will be strong rebound for most of AUY (10.66 ↑5.86%), ABX (36.5 ↑4.83%). GDX (42.94 ↑5.45%). Too many overhead resistance from 200D MA, 13D and 26 D. I would take up short positions on these stocks

    Hecla (HL 5.13 ↑12.50%) Mining appears to be  the strongest among the gold mining stocks as it still manage to hold above the 200D MA and yesterday’s white candlestick shows relatively higher volume. But even so, the trend is clear as the gold mining stocks are all heading south. I don thinkDow Jones ( DJI 10185.530000 ↑1.17%) will continue to be strong today as yesterday’s volume is weak even as Dow Jones rise 100+ points.

    2 Feb ABX

    2 feb AUY

    2 feb GDX

    2 feb Hecla



    Disclosure: No
    Themes: Gold Mining Stocks: AUY, HL, GDX, ABX
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    Given the current US defict and the continued and ongoing mishandling of the economy, together with the USD printing presses on overdrive, anything with the name gold in it, around it, or about will will have to increase in value over the long term. Fiat currencies will be as useless as used toilet paper.
    2 Feb 2010, 03:16 PM Reply Like
  •  
    As a many-AUYs suffering shareholder I have to say that at least they execute and get rid of money suckers quickly (while being sneaky about the reasons). Case in point: The once greatly praised São Francisco Mine - supposed to be a >400,000 oz/year company maker at base-bottom cash costs below $100/oz. Well, turned out to be geologically much more challenging than thought (spotty gold distribution - the website puts it mildly as "This is a complex ore body and is impacted by a significant mine call factor which can cause variability periodically") and costs came in over $500/oz - so away with it with San Andres and Sao Vincente to Aura Minerals.

    Goes like this: Theory of the greater fool - in this case dumb investors salivating about the new producer with an "Aura", without doing due dilligence WHY Yamana got rid of those mines. Marrone wasn't CFO of Cannacord for a reason - he learned a thing or two about milking dummies. At least a good thing for us AUY shareholders. NOW they have more money to REALLY BLOW IT at Agua "Rica". Hope they come to their senses when copper drops again under $1 per pound and that deposit turns again to potting soil. But that is another story.

    About Hecla: High-cost base metal miner with a silver credit. It just sells better to be a "precious metals company". Just look at their numbers (e.g. Hecla's Dec. 2009 presentation), and usually about half of the revenue comes from lead, zinc, and copper (and in the case of a couple of South American silver mines, tin). The thing with the leverage from these metals with long-term awful economics and volatility goes also the other way! Once lead and zinc drop to below production costs, as they tend to do as sure as the sun goes down, these "precious metals" miners are in an awful lot of trouble. Worse yet, they almost always dilute shareholders out of the window in these instances instead of stopping to produce and preserve capital (lest pumping cost and interest payments, that is). Stay away!
    5 Feb 2010, 01:05 PM Reply Like
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