The "State of the Union"

Probably not a fitting title.... but I like the "state of" part....

I'm seeing a lot of volume which is a double edged sword.... it is a mix of dumping (capitulation) and accumulating that signals a bottom is near, where double bottoms in any issue would be areas of consideration for low risk entry... charts are indicitive of oversold... but dead cats lay everywhere... there could be some thrashing overall however...

A quick look at the Stockcharts Public List shows a very oversold "state of".... and we haven't finished May yet.... Over the holidays the state of the natural condition of the Canadian market will swing to the "vacation state of" mind of the North American continent which includes government officials who would maneuver licenses (gonzo spending taxpayer bonus money on high profile vacations where they cry in their cognac about how they are fighting the good fight and not getting paid enough)... along with many ordinary citizens who should be just about relieved of their money in this downturn to a "state of" they couldn't participate en mass in a rally if they wanted to...

Still there there is enough deep pockets who can manipulate a summer spike on low volume and the hammer it down on profit taking... Bull Bait rallies.

Some issues ... not as many as in a full blown market move... will manage to hold their gain on solid fundamentals, but they will likely have been oversold for months going into the the summer doldrums rather than have been issues that have taken the swan dive bouncing on momentum.

From a short trading perspective this is a slippery slope and any opportunity to take some off the table should be an opportunity not wasted.... In other words the odds of landing on a solid sustained uptrend in a Small Cap is way down as an average to bet the farm on.

It is getting interesting for some attractive buys on solid no debt, cash in the bank, low float, multi project issues heading into the the doldrums for the final stretch coming late August early September. The market, although yet to prove it, is moving into a cycle more apt to trace a more traditional seasonal transition through into next year.... something that may offer a more traditional type of expectation to try and surf...   we might be able to plan for  a decent tax sell, Santa rally and a January effect more robust than we have just experienced.

Over the next 3 months sweeping out the watch list looking for long holds rising out of the carnage will be a project... keep in mind they will be small Caps and as such have a 90 % chance of being mediocre at best... and anything that is actively placing on foreign soil may be considered, but not acted with confidence on as the middle east is anything but changed for the good. (JMOP)

This is probably moving into "State Of" one the best times to go shopping for solid speculative fundamentals in safe jurisdictions....  this type of "state of" is where the new promotions come out of ( definitely fun to ride) but also where the solid fundamentals are left for the dead... and as the promoters move on to new names... leaves the carnage to develop investor style...  which I have seen some real solid moves on sustained up trends bereft of the choppy momentum that trademarks manipulation...  As was such demonstrated when the bottom came in on the last downturn... and also included the the last go away in May. The silver lining is close.

 GLTA Lostoutwest

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Interesting analogy

Compliments of Jim Jubak.... The silver crash .....

Silver crash


GLTA Lostoutwest


If you see the hand mousing over screen shots... click on screen shots to enlarge them.

After connecting to a link... you should refresh the page by clicking on the Home button or the Web Page title to ensure the latest updated page

|| Stockcharts Public List ||

|| Kenuck SmallCap Trader || The Gold Report || Korelin Radio || StockCharts You Tube Lessons || Money In Metals || Resource Clips || Stockhouse || Ticker Trax || Bullion Bulls Canada || Lex corp || Track My Trade || National Post || Grandich || Penny Stock Journal || FreeStockCharts || Gold$eek Drill Results 101 || CBCnews || Seeking Alpha || SmallCapPower || Macroaxis || GOOGLE

Please read our Complete Disclosure