I think the consolidation is ending – I’m buying

by JDH on January 11, 2007

As I reported earlier this morning, as of yesterday my Portfolio Performance was done about 10.5% in 2007 as of the end of the day yesterday (as compared to being up 94% in 2006).

Today, market action is much more positive. Is this a “dead cat bounce”, meaning a pause in the downward slide? I don’t think so. Consolidations are normal, but I think it’s about over, so I’m buying. I didn’t sell anything during this consolidation, so I am not sitting on lots of cash. However, I think there are some deals out there, so today I picked up a few more shares of CXX.V – Crosshair Exploration & Mining Corp., JNN.V – JNR Resources Inc. and UUU.V – Urasia Energy Ltd.

I guess we now get to see if I’m right, and the consolidation is over. Thoughts, anyone?

{ 4 comments… read them below or add one }

Fabe W January 11, 2007 at 10:42 am

I think we’re in for a major rally in all resource sectors. Probably even oils, although the technical picture has deteriorated rather sharply for crude oil – unless it regains the 56 level fairly promptly. (It might do, as it’s very oversold.)

The only question in my mind is, will this be a rally within a massive top formation, or the resumption of the bull trend? Sentiment has been very gloomy for resources lately, suggesting the latter; on the other hand, some of the sell-offs have been sharp enough to question the bull hypothesis (e.g. copper, oil, zinc).

edefreitas January 11, 2007 at 12:17 pm

The following article, came out yesterday, and definitely suggests so, today’s market reflects that, although you can still feel the tension as in most cases everything’s up, but with low volume.

But I think as we enter into next week we’ll see some rally’s again, specially as people realize that there are some bargains to be gotten. Might even see that tomorrow, even though Fridays are usually pretty slow.


u58 January 11, 2007 at 8:30 pm

Good call! I blasted away today on my fav’s …Bayswater and a
few k of Titan to average down. I do believe that we are back on track
to test the high area of the recent glorious activity.
Also I have been following Trigon Uranium…another Pinetree holding
and have obtained a quick double from .64 to about 1.18 in short order.
The massive gain prompted me to take the profit….but low and behold
it popped up on my radar again today as someone seems to be accumulating
ahead of news..(my assumption) Trigon (TEL.V) really
serves to impress as the volume has been steady and behaving like
some of these Thoroughbreds have in the past…
Incidentally, wonderful site and thanks for taking the time and energy to
keep us better informed….also keep the young mind (your son) active
as he is open to more sensitive information than us seasoned investors
are….a divining rod so to speak!

ec January 12, 2007 at 6:37 pm

I would have to agree that things are starting to look optimist again. I’ve added to SAN.TO and FRG.TO had some recent good news – I believe they were up about 4% today and tomorrow I will be getting in more. I am trying to keep cash for Dines letter out due in a week or so.

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