monthly buying spree

"The SPX gained 753 points from January 1995 through the end of 2004 (10 years). But, had you purchased the SPX the day before the last trading day of the month, and exited on the opening of the fifth trading day of the month (and you stayed out of the market the rest of the month), the gains were 820 points." (Larry Connors)

workers strike at BHP copper mine in chile, cerro colorado, confirmed

base metals zinc nickel copper all firming today thus far, and strong gdp number just out should help
http://technicalwatch.com/metals.htm

oil futures complex seems overdone to the upside(short covering and no real reason for crude to do +3,so be careful being a late long in oilers into the 10:30ET numbers, OIH back up to test 50/200 day emas where it did not get thru before

gold not liking the stronger dollar or weak bonds at this moment(due to their movement on the 8:30ET econ data), with the 50 day sma just above are HUI.x GG NEM AEM

GDP 3.5%?

http://tinyurl.com/2mx5tm

Here's a choice quote:

"The reports, with their strong growth and temperate inflation, should reassure the Fed that its current interest rate target of 5.25% is appropriate, although the stronger-than-expected growth creates a risk of higher inflation. The Fed has been counting on several quarters of growth below the long-term potential of above 3% to damp down inflationary pressures."

Gold likes something. The chart looks like a rocket take off @10:10AM :)

It is a strong PM rally, but i'm not sure if it wille stick by the end of the day. Gonna be an interesting FED decision. Could they actually get more hawkish and REALLY kill housing? But getting back to the PM shares, it's good to see SLW moving well. Perhaps the momo players in paas and ssri are switching horses.

mogwali, housing is already in its death throes. Slowly declining prices (which are still far too high in most markets) and a tightening sub-prime market is going to lead to further declines both in total sales and prices.

Add to this the inventory glut -- reflected most recently in report that vacant homes are at their highest level since 1965, and there is virtually nothing the FED can do to stop the machinery necessary to bring this market back into balance.

Re gold: the neckline of the inverted h&s is forming price support. If this continues, the target of this pattern is over the old high of $730.

dollar fell off 1/2 point from highs as bonds went green(lower yields) really got the metals in an unstoppable position now, crude oil 57.65 on freezing weather forecasts

we're getting HUI and many goldies busting thru 50 day sma, AU 'bow ties' on 20/50/200 day sma

GFI +7%, 'volume leads price' yest., congrats Bill for the alert

11:29ET 'Zach's challenge 2007 top player features KRY'

Hell Bill,
Nice write up on WGI yesterday. I have owned the stock for quite sometime. I think it is undervalued and it appears that you may also feel the same way. Hugh Cleland of Northern Rivers has a target of around 7 dollars. All of us like it. Why does the market not reflect a fuller price considering WGI has lot of gold soon to be in production?
Thanks,
Tom

GFI: Bill has had a significant % of PM calls that play out in the 15 minute to 24 hr range...

GLD breaks out over last august price
http://www.mptrader.com/mpmarkets/1/2007/31/

"In the past, a typical Fed announcement day began with a bit of upside in the morning, but over the past couple of years this has not held true as often. It's still better than a 50/50 chance though. Over mid-day the risk for new positions will increase dramatically. Directly after the announcement the volatility will increase again. There are typically three waves of reaction to the Fed. They can take place on both the 1 minute time frame in the immediate aftermath and then another three-wave reaction on the 5 minute time frame.
There is the initial momentum, a counter-move which may be stronger than the first, and then a third move back in the initial direction. In the first several minutes following the announcement the surge in volume can easily disrupt the accuracy of the quotes traders are receiving, so use some additional caution at this time!"
http://hardrightedge.com/midnight.htm

Did anyone see this new item:

I am seeing it in my Fidelity ActiveTrader news section for GRZ.

DJ Venezuela Mining Min: Crystallex Only Needs Mine Permit

--------------------------------------------------------------------------------

Dow Jones Real-Time News for InvestorsSM
5:14 p.m. 01/24/2007



CARACAS (Dow Jones)--Canadian mining firm Crystallex International Corp. (KRY) is only waiting on an environmental permit to begin exploiting the Las Cristinas gold mine in the east of the country, the country's mining minister said on Wednesday.

"Right now, the only problem with Crystallex is they lack the environmental permit," said Mining Minister Jose Khan, speaking to reporters at Miraflores palace.

The government approved Crystallex's project plan last year, but the company has been waiting for a permit from the Ministry of the Environment since 2002.

Last week Venezuelan Foreign Minister Nicolas Maduro said Venezuela was considering increasing state control over the mining industry.

Venezuela's mining industry was nationalized in the 1970s, but successive governments have granted permits to foreign companies to exploit for minerals. President Hugo Chavez has made clear he wants increased state control over these activities, but it is unclear how this will affect foreign companies operating here.

Khan said the state is looking to set up a National Mining Company to regulate the mining industry, especially gold mining, where he claims the vast majority of production goes unreported due to illegal mining activities.

Concerning Las Cristinas, where Crystallex plans to operate, he said the government is "reviewing" the property, but he declined to elaborate on how this review could affect Crystallex's future operations at the mine.

Other foreign miners operating in the Andean country include Gold Reserve Inc. (GRZ), U.S. company Hecla Mining Co. (HL), as well as China's Shandong Gold-Mining Co. (600547.SH) and South Africa's Gold Fields (GFI).

JogyP...we had that as late breaking news last week!

Sorry, I was away from the market for a few days. My wife had an emergency C-section last week and We just got back from the hospital yesterday with a new born boy.
Did'nt realize that I was away for 6 days and got excited when I saw the KRY news.

JogyP:

Congratulations!

golden7

Reference WGI (WGDF), underwriters have exercised in full their over-allotment option to purchase an additional 2.215 million shares at C $2.25 or @ US$ 1.9125. May temporarily hold back price.

No position.

JogyP. Congrats. The real KRY fireworks were yesterday!

FED keeps the rate the same and the market jumps. WTF ? Was everyone expecting the FED to raise rates ?

No, but what did was proably the subtle change in the statement reflecting improved outlook for growth and inflation.

Any news on GRZ, up 12% ?

wow, i didn't see this coming. Looks like the gold breakout at $650 will stick. I thought the slight fed bias toward tightening would spook the markets but the dollar just tumbled. i saw that pimco's bill gross even predicts a rate cut in May.

Well, the sector I love to hate is getting run like the bulls in Pompano today. Among them, KB Home, which hasn't reported results for over 6 months and is now officiually under investigation by the SEC for options backdating, is up 5%.

Pulte, also up big today, reports after market.

better late than never...here is a great post today from my favorite "bear" report.

Nourel Roubini
Q4 GDP Growth at 3.5%: What It Means and What It Implies for 2007
http://www.rgemonitor.com/blog/roubini/175615

Snippet: "11.9% increase in defense spending...that contributed 0.7% to Q4 growth"

Hey folks,

Bought CUP yesterday @ 3.97, and I was hoping for a really strong counter-trend up move, which I could sell into. The rally which did in fact occur was anemic (is that spelled right?) I would have gladly sold at or near the "high" of 13 cents, but within split-seconds it was back down into single digits and I just shoulda gotten while the gittin was good. That kind of is the rule on those things, sell ino the FIRST rally, long afternoon of ........frankly I was getting a headache watching that thing trade weakly and wondering when the rally would kick in. I bailed out my buy price. Now watch it shoot up tomorrow on the open. I have no doubt it may.

Chris