PAT - RIGHT PLACE AT THE RIGHT TIMEClosing The Books On a Vicious Correction
PAT - THE RIGHT PLACE AT THE RIGHT TIME
Your guess is as good as mine about market direction UNTIL we have evidence and today's trading activity threw off some solidly bullish indications.
Here's what some important indicators showed in Tuesday's trading activity.
1) The Toronto Gold Index touched the top of a 'Neckline' in what apears to be a 'Head & Shoulders' bottom formation which is a period of accumulation. It also brushed the top of the First Wave up. After touching these technical reference points the index simply exploded upward on higher volume. This was a very impressive show of strength.
2) Simultaneously, the Toronto Venture Exchange's interim daily low of 2343 held above important support at 2322 extending back to October 4th 2006. Clearly now, it does appear that an A-B-C correction ended here. There are two parts to the decline punctuated by a contratrend advance from 08/16/07 to 11/06/07. The two part decline is characteristic of corrections within an ongoing bull market. A third similar decline is unlikel;y and more probable is the start of a new advance for the Venture Exchange.
3) It wasn't perfect, but the XAU Index almost touched an uptrend line extending from the bottom in August 2007. The interim daily low was 168 and a retest of 158 seems less likely.
This is technical detail pertaining to Gold & Exploration issues, but it does seem that the general U.S. Equity markets have reached at least a temporary bottom based upon extreme sentiment indicators. There's no doubt in my thinking that Gold & most exploration issues will be the leaders in another developing advance. Strength should now spread down to the micro exploration issues.
It may be time to close the books on this vicious correction. Expect an advance in Micro Exploration Issues after perhaps brief base building or a retest of recent lows.
PAT is an outstanding value here. In my experience you might sit for years wondering why a situation is so undervalued. Then one day, expectations are realized. Quarterly earnings are coming folks. Climb aboard here and you are in "The Right Place At The Right Time".