Petaquilla Minerals Ltd PTQMF

RE: markets

[Libertyg]

The reason i post these opinions on Gold and Silver is the overall affect it has on our investments. Especially the potential of another leg down. When you see sideways type trading that is one of two things occurring. A bottom is forming or a pause before the next leg down. If were bottoming then the values of our resource stocks is very attractive as buys. But if we are indeed preparing for another down leg it could be very extreme, and close or equal to the first down leg. Meaning Gold down to 1400.00/1440 area or at least, and silver down to 29.00, 26.50, or even worse back down to the 20.00 area. It's extreme but possible considering the world climate. If the Fed remains mum on it's next infusion of paper over the summer it could lead to some strong downside momentum. It's impossible to know what will pop up in this fragile climate, so be prepared for anything.

I don't have a strong opinion on which way we go from here, but do believe strongly that lower closes in the metals may be the signal this is not over yet. We'll see if that happens and at what price levels. I did re-short silver today and won't ride it much past 34.00. I think a minimum of a re-test of the 33.40/50 area will occur today. If it holds i'll cover but if it fails i will hold short.