RE: RE: RE: RE: RE: Taylor1988...Technical analysis does work with penny stocks, it just should be supplemented with fundamental analysis to better understand ripples in the chart and what causes highs and lows.
Gold stocks were not in a bubble last summer as gold as an asset class is only 5% held compared to close to 20% in 1980's, this is not mania nor hysteria for owning gold. A gold bubble is when it opens up in the morning over $120 dollars and the majors which are STILL undervalued start to actually move.
Why would I be seling positions in juniors when the majors are not even pricing in $1450 gold yet?
The juniors will follow after people finally start believing and bidding up the majors and there is no excuse for where the TSX gold index is trading right now relative to the price of gold.
Why would I leave 50% of my profits on the table selling GBB and other juniors right now when gold is at a 52 week high and our stocks are still pricing in gold $150 - $200 dollars ago.
Agnico Eagle - (AEM) is at $64.30
It was trading at $88.80 when gold was at $1428 this summer, gold is at $1455 and AEM is $25 dollars lower?
Barrick, Yamana etc are the same way still at 2009 prices while gold hovers over all time highs.
I've tracked the large majors the past 2 years and they are currently trading at the same prices when gold was at $1150 - 1250 an ounce just over a year ago.