Predicted top in GPR off by 1 cent, as gold and silver stall on Mr Ben squashing QE3 hopes

The price objective was hit on Great Panther Resources where my sell order was filled @ 3.90

Once 3.90-3.91 was touched twice, a correct ensued along with most other silver / gold mining companies on the TSX.  This doesn't mean the rally is over but prices have got a head of themselves.

As you can see from the daily chart the price is overextended as it is well above the top bollinger bands.  This doesn't mean that prices can't continue higher but the probability of this is low.  Hence my exit.

Gold has just made a new all time high

This morning gold came close to 1580 breaking it ask time high of 1577. Look for the price to accelerate when the US market opens.  Silver is testing 37 as I am posting this as well.

Gold break out again; close to all time high | Silver soon to follow

Gold does it again, sneaks up on common observer and is filtering with all time highs ($1577 and change).  Today's move came at 1:45-2:15 where gold jumped $20 to just shy of 1575.  Remember folks the screams and shouts about gold being over priced a few months back as prices started to slide.  This new relevance of gold is putting central banks around the globe into panic mode.  The fear is simply a loss in faith of governments as they ramp up the printing machines to fight this second crunch.  With The US debt debate in full swing it will be interesting to see how it will be resolved and what the market reaction will be.  August 2nd, 2011 is a big day for the US and it is approaching relentlessly.


Yamana Gold Inc, (YRI on the TSX) has been a company I have been watching for some time now.  Search for YRI for more posted from the past 6-12 months.  This company is outside my normal range of $2-$7 stocks but it is awesome for options as they are relatively liquid.  Currently I have an August option @ $12 strike.

Today's move was dramatic, 3.32%.  Note that since it has blown outside the bollinger bands it would be unwise to jump in now as it is likely to correct.  However, picking this stock up at 12.00-12.10 with a tight stop would be a high potential trade with limited downside.  The slow stochastic is overbought but looking like it my "embed" which means the K and D line will remain above 80 for a few more days while the stock gains another buck or so.  I am looking at the $13 area as a potential time to exit unless it is reached in short order.   This is one of those stocks that reacts very well with gold.

In fact Yri could be considered undervalued relative to gold by about 10%.

EnWave (ENW.V), Sabina Gold and Silver (SBB), Great Panther Resources (GPR)

EnWave has been a stock I have been following for some time now.  I am considering my stop below the bottom channel line around 1.70.  However, This stock could be turning, I have been waiting for an up move for the past couple of does and it appears that a based has been formed at the 1.75 mark.

A company description from EnWave's corporate website:
"EnWave Corporation is an industrial technology company developing commercial applications for our Radiant Energy Vacuum (REV) dehydration technology. REV is used to dehydrate food, bulk liquids, and pharmaceuticals. EnWave's mission is to establish REV as a new dehydration standard: faster and cheaper than freeze drying, with better quality than air drying or spray drying."

 Sabina (SBB.TO) is still looking to break the wedge that has been formed.  Today we saw this stock slightly gain with other precious metal companies fall as silver broke more than 2.5%.  Other gold companies did well as well, for example Yamana Gold (YRI.TO) .

A company description from Sabina's corporate website:
"Sabina Gold & Silver Corp. is a Canadian precious metals exploration Company with a portfolio of several different properties in Canada at different stages of development.  The Company's flagship projects are currently located in Nunavut, in the Canadian North."

Great Panther Resources (GPR.TO) is a very interesting stock, my plan is to play a "wave 5" or impulse move to the upside.It is interesting to see the Fibonacci fan used with this stock, it appears to fit well with this current move.  The slow stochastics is clearly oversold and looking like the momentum is shifting back to the upside.  This break was interesting as silver fell dramatically but gold made some mild gains.  Therefore, Silver is likely going to follow gold for the next bit but today would have been a good time to buy into silver stocks.  They might continue to drop a bit more but I couldn't expect silver falling much lower than it did today.

The current prediction I have for a wave 5 is 3.85 therefore I am maintaining a sell order at this level unless metals look like they are going to go parabolic.

A company description from Great Panther Resource's corporate website:

"Great Panther Silver Limited, headquartered in Vancouver, Canada, is one of the fastest growing primary silver producers in Mexico with strong leverage to future rises in the price of silver. The Company owns two operating mines in Mexico, and employs over 900 people."


Just to demonstrate the mixed day with silver and gold going opposite directions here is some quotes from a list of companies that I follow.