With today’s move in gold it sure looks like a big move is coming. It won’t be an easy decision to put more money at work in the Rare Earth sector. As of yet it looks like being invested in both sectors is the way to go. Today’s move in gold was nothing short of spectacular. A rising tide raises all ships they say. All gold ships on my screens indeed took off. This is the first time in a long time volume is pumping along with a move to the upside. I would like to see one or two more up days. Good follow through with huge volume would be great confirmation and validate the fact September is a good month for gold. So if we get more confirmation and if seasonality is to be trusted this could lead to some serious moves to the upside.
Always keep in mind that stocks with less overhead resistance will outperform stocks with big overhead resistance most of the time. That said it would be the perfect time to launch some good news for VEN.TO – Ventana Gold and BOW.V – Bowmore Exploration. Both are trading near their respective all time highs and news is due. Let’s see if those perfect setups are met with great news.
Here is a chart of GG – Goldcorp a good proxy for gold and gold mining stocks showing how significant today’s volume is:
Have a great evening!