Very ugly day in the market today. This is the time to closely monitor overall market conditions. There are not many positive things I noticed today. A few observations and a quick review of my portfolio positions:
- VEN.TO – Ventana Gold: The volume is ever decreasing. This still looks like a possible continuation pattern after the huge run. Overall the stock looks vulnerable though.
- WTM.TO – West Timmins Mining: This one was very resilient. A good sign.
- AVL.TO – Avalon Rare Metals: The stock almost closed in the green. That’s what you expect a strong stock to act like on a day like this.
- MRGE – Merge Healthcare: Wasn’t expecting such weakness. If it can regain the 3.70 -3.80 area the stock will be in the process of building a bullish wedge.
- BXI.V – Bio Extraction: Disappointing action today. Then again the stock is still trading above 0.50. Overall the chart is still very bullish.
- UW.V – Underworld Resources: More weakness than I expected.
- UXG – US Gold: A move below 2.00 probably will trigger lots of stop loss orders. I would like the stock to regain the 2.30 – 2.40 level pretty quickly. Otherwise the bullish pattern pressure will be lost.
- RGLD – Royal Gold: This stock is obviously much less volatile and less aggressive than the other stocks in my portfolio. Being patient with that one.
If you can’t sleep at night you know what you have to do. You need to reduce overall exposure, take partial profits and sell down to your sleeping level. The next few days will be telling. The true winners will show their hand. Others will not act well. Those are the ones I will monitor very closely.
Have a great evening!