Well it looks like the rally is starting, growing slowly with a broad base of support for Gold. Keep accumulating while you have the chance. Lots of Companies out there that are looking mighty attractive. Remember accumulate juniors and mid tier producers or those companies at or near production. Remember I am still calling for $1250 gold by year end. The only monkey wrench that could be thrown in is if the big the shorts on the market try to drive it down one more time. Support lies at $950, $928, $910; and resistances are at $970, $987, and then $1000. This rally is very reminiscent of what  happened back in July-Aug. 2007 only on a more volatile basis. One other quick note as far as Silver is concerned. I am looking for $25+ Silver by the end of the year and to perform on a percentage basis even better than Gold. Some stocks I really like aggressive buys, (OSKFF) $6.80 OB, (HL) $3.75 OB, (NAK) $7.55 OB, (CDE) $16.00 OB, (NG) $5.00 OB, (FRG) $5.00 OB, and that’s just to mention a few.  For Silver, (FRMSF) $2.80 OB, (IVN) $8.50 OB, along with (HL) and (CDE). For Platinum and Palladium, (SWC) $7.50 OB, (PAL) $3.90 OB, (ANO) $1.25. (OB equals or better). Remember due your due diligence, consult your financial advisor’s and read the prospectuses before making any investments. Disclosure: I am Long all of the afore mentioned stocks. Good Investing! -jschulmansr

========================================

Please Follow me on Twitter & FaceBook at: 
http://twitter.com/jschulmansr - Overall Markets and Trading Blog
http://twitter.com/daresomething - Politics
http://twitter.com/tweetsgold - Gold and Precious Metals
http://twitter.com/tweetsthecash - Internet Marketing and Affiliate Marketing
FaceBook http://facebook.com/jschulmansr 


===================================================

Claim a gram of FREE GOLD today, plus a special 18-page PDF report; 

Exposed! Five Myths of the Gold Market and find out: 

	
· Who's been driving this record bull-run in gold?
	
· What Happens When Inflation Kicks In?
	
· Why most investors are WRONG about gold… 
	
· When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold,


at BullionVault  

====================================================

Why Gold Could Hit $1,300 This Year --- Seeking Alpha

By: Graham Summers of Gains, Pains, & Capital

Gold may be nearing its next major leg up.

No investment ever goes straight up or straight down. During the


last bull market in gold, the precious metal rose 2,329% from a


low of $35 in 1970 to a high of $850 in 1980. However, during that


time, there was a period of 18 months in which gold fell nearly 50%


(see the chart below).



As you can see, from mid-1971 to December 1974, gold rose 471%. It


then fell 50%, from December ’74 to August ’76. After that, it began

its next leg up, exploding 750% higher from August ’76 to January


1980. Now, in its current bull market (2001 to March 2008), gold


rose over 300% from $250 to a little over $1,000. And just like in


the mid-70s, it began showing signs of weakness after its first big


rally up to $1,014 in March ’08. At one point, it even fell to $700, a 30% retraction.

Granted, it wasn’t a full 50% retraction like the one that occurred


from 1974-76. But we are experiencing a financial crisis. And gold


is the most common catastrophe insurance.

If we were to go by the historic pattern of the gold market in the


‘70s, gold should experience upwards resistance for 19 months after


its first peak today. Gold’s recent peak was $1,014 in March ’08


(roughly 17 months ago). If this bull market parallels the last one,

then gold should renew its upward momentum in a very serious way


starting in October 2009. And this next leg up should be a major


one (the biggest gains came during the second rally in gold’s bull


market in the ‘70s).




The chart certainly forecasts a major move.



As you can see, gold has formed a long-term inverse head and


shoulders formation (two smaller collapses book-ending a major


collapse). Typically a head and shoulders predicts a massive


collapse. However, when the head and shoulders is inverse, as is


the case for gold today, this typically predicts a MAJOR leg up.

Indeed, any move above the “neckline” of 1,000 would forecast a


MAJOR move up to $1,300 or so. Going by history, this is precisely


the move we should expect: remember based on historical trends


(the gold bull market of the ‘70s) gold should begin its second


and largest leg up in September or October 2009.




Watch the gold chart closely over the next month or so. If gold


makes a move above $980 perhaps add to your current positions.


If it clears $1,000, hold on tight, cause the next leg up in this


secular bull market has begun.
Good Investing!
===================================================

My Note: After watching stocks (DJI) this afternoon and the strange


price behavior before the close, I felt I would add this article too!


-jschulmansr

===================================================

Five Reason the Market Could Crash This Fall - Seeking Alpha

By: Graham Summers of Gains, Pains, & Capital

With all this blather about “green shoots” and economic “recovery”


and new “bull market,” I thought I’d inject a little reality into


the collective financial dialogue. The following are ALL true, all


valid, and all horrifying…
 
Enjoy.
 
1)   High Frequency Trading Programs account for 70% of market


volume
 
High Frequency Trading Programs (HFTP) collect a ¼ of a penny


rebate for every transaction they make. They’re not interested


in making a gains from a trade, just collecting the rebate.
 
Let’s say an institutional investor has put in an order to buy


15,000 shares of XYZ company between $10.00 and $10.07. The


institution’s buy program is designed to make this order without


pushing up the stock price, so it buys the shares in chunks of


100 or so (often it also advertises to the index how many shares


are left in the order).
 
First it buys 100 shares at $10.00. That order clears, so the


program buys another 200 shares at $10.01. That clears, so the


program buys another 500 shares at $10.03. At this point an HFTP


will have recognized that an institutional investor is putting in


a large staggered order.
 
The HFTP then begins front-running the institutional investor. So


the HFTP puts in an order for 100 shares at $10.04. The broker who


was selling shares to the institutional investor would obviously


rather sell at a higher price (even if it’s just a penny). So the


broker sells his shares to the HFTP at $10.04. The HFTP then turns


around and sells its shares to the institutional investor for


$10.04 (which was the institution’s next price anyway).
 
In this way, the trading program makes ½ a penny (one ¼ for buying


from the broker and another ¼ for selling to the institution) AND


makes the institutional trader pay a penny more on the shares.
 
And this kind of nonsense now comprises 70% OF ALL MARKET


TRANSACTIONS. Put another way, the market is now no longer moving


based on REAL orders, it’s moving based on a bunch of HFTPs gaming


each other and REAL orders to earn fractions of a penny.
 
Currently, roughly five billion shares trade per day. Take away


HFTP’s transactions (70%) and you’ve got daily volume of 1.5


billion. That’s roughly the same amount of transactions that


occur during Christmas (see the HUGE drop in late December), a


time when almost every institution and investor is on vacation.
 
HFTPs were introduced under the auspices of providing liquidity.


But the liquidity they provide isn’t REAL. It’s largely microsecond


trades between computer programs, not REAL buy/sell orders from


someone who has any interest in owning stocks.
 
In fact, HFTPs are not REQUIRED to trade. They’re entirely “for


profit” enterprises. And the profits are obscene: $21 billion


spread out amongst the 100 or so firms who engage in this


(Goldman Sachs (GS) is the undisputed king controlling an estimated


21% of all High Frequency Trading).
 
So IF the market collapses (as it well could when the summer ends


and institutional participation returns to the market in full


force). HFTPs can simply stop trading, evaporating 70% of the


market’s trading volume overnight. Indeed, one could very easily


consider HFTPs to be the ULTIMATE market prop as you will soon see.
 
TAKE AWAY 70% of MARKET VOLUME AND YOU HAVE FINANCIAL ARMAGEDDON.
 
2)   Even counting HFTP volume, market volume has contracted the


most since 1989
 
Indeed, volume hasn’t contracted like this since the summer of 1989.

For those of you who aren’t history buffs, the S&P 500’s performance


in 1989 offers some clues as what to expect this coming fall. In


1989, the S&P 500 staged a huge rally in March, followed by an even


stronger rally in July. Throughout this time, volume dried up to a


small trickle.
 
What followed wasn’t pretty.



 
Anytime stocks explode higher on next to no volume and crap


fundamentals you run the risk of a real collapse. I am officially


going on record now and stating that IF the S&P 500 hits 1,000, we


will see a full-blown Crash like last year.
 
3)   This Latest Market Rally is a Short-Squeeze and Nothing More
 
To date, the stock market is up 48% since its March lows. This is


truly incredible when you consider the underlying economic picture:


normally when the market rallies 40%+ from a bear market low, the


economy is already nine months into recovery mode. Indeed, assuming


the market is trading based on earnings, the S&P 500 is currently


discounting earnings growth of 40-50% for 2010. The odds of that


happening are about one in one million.
 
A closer examination of this rally reveals the degree to which


“junk” has triumphed over value. Since July 10th:
 

	
The 50 smallest stocks have outperformed the largest 50

	
stocks by 7.5%.
	
The 50 most shorted stocks have beaten the 50 least shorted

	
stocks by 8.8%.

 
Why is this?
 
Because this rally has largely been a short squeeze.
 
Consider that the short interest has plunged 72% in the last two


months. Those industries that should be falling the most right now


due to the world’s economic contraction (energy, materials, etc.)


have seen the largest drop in short interest: Energy -90%,


Materials -94%, Financials -86%.
 
In simple terms, this rally was the MOTHER of all short squeezes.


The fact that it occurred on next to no volume and crummy


fundamentals sets the stage for a VERY ugly correction.
 
4) 13 Million Americans Exhaust Unemployment by 12/09 
 
A lot of the bull-tards in the media have been going wild that


unemployment claims are falling. It strikes me as surprising that


this would be true given the fact that virtually every company that


posted the alleged “awesome” earnings in 2Q09 did so by laying off


thousands of employees:
 

	
Yahoo! (YHOO) will cut 675 jobs.
	
Verizon (VZ) just laid off 9,000 employees.
	
Motorola (MOT) plans to lay off 7,000 folks this year.
	
Shell (RDS.A) has laid off 150 management positions

	
(20% of management).
	
Microsoft (MSFT) plans to lay off 5,000 people this year.

 
So unemployment claims are falling, that means people are finding


jobs right? Wrong. It means that people are exhausting their


unemployment benefits. When you consider that there are 30 million


people on food stamps in the US (out of the 200 million that are of


working age: 15-64) it’s clear REAL unemployment must be closer to


16%.
 
And they’re slowly running out of their government lifelines.
 
The three million people who lost their jobs in the second half of


2008 will exhaust their benefits by October 2009. When you add in


dependents, this means that around 10 million folks will have no


income and virtually no savings come Halloween.  Throw in the other


four million who lost their jobs in the first half of 2009 and


you’ve got 13 million people (counting families) who will be


essentially destitute by year-end.





How does this affect the stock market?
 
The US consumer is 70% of our GDP. People without jobs don’t spend


money. People who are having to work part-time instead of full-time


(another nine million) spend less money than full time employees.


And people who are forced to work shorter work weeks (current


average is 33, an ALL TIME LOW), have less money to spend.
 
Wall Street makes a big deal about earnings (earnings estimates,


earnings forecast, etc), but when it comes to economic growth,


sales are the more critical metric. Companies can increase profits


by reducing costs temporarily, but unless actual top lines increase,

there is NO growth to be seen. No revenue growth means no hiring,


which means no uptick in employment, which means greater housing


and credit card defaults, greater Federal welfare (unemployment,


food stamps, etc), etc.
 
So how will corporate profits perform as more and more consumers


become part-time, unemployed, or destitute? Well, so far profits


have been awful. And that’s BEFORE we start seeing millions of


Americans losing their unemployment benefits.






With the S&P rallying on these already crap results… what do you


think will happen when reality sets in during 3Q09?
 
5) The $1 QUADRILLION Derivatives Time Bomb
 
Few commentators care to mention that the total notional value of


derivatives in the financial system is over $1.0 QUADRILLION


(that’s 1,000 TRILLIONS).
 
US Commercial banks alone own an unbelievable $202 trillion in


derivatives. The top five of them hold 96% of this.
 
By the way, the chart is in TRILLIONS of dollars:



As you can see, Goldman Sachs alone has $39 trillion in derivatives


outstanding. That’s an amount equal to more than three times total


US GDP. Amazing, but nothing compared to JP Morgan (JPM), which has


a whopping $80 TRILLION in derivatives on its balance sheet.
 
Bear in mind, these are “notional” values of derivatives, not the


amount of money “at risk” here. However, if even 1% of the $1


Quadrillion is actually at risk, you’re talking about $10 trillion


in “at risk.”
 
What are the odds that Wall Street, when allowed to trade without


any regulation, oversight, or audits, put a lot of money at risk?


I mean… Wall Street’s track record regarding financial instruments


that were ACTUALLY analyzed and rated by credit ratings agencies


has so far been stellar.
 
After all, mortgage backed securities, credit default swaps,


collateralized debt obligations… those vehicles all turned out


great what with the ratings agencies, banks risk management systems,

and various other oversight committees reviewing them.
 
I’m sure that derivatives which have absolutely NO oversight, no


auditing, no regulation, will ALL be fine. There’s NO WAY that the


very same financial institutions that used 30-to-1 leverage or more


on regulated balance sheet investments would put $50+ trillion “at


risk” (only 5% of the $1 quadrillion notional) when they were


trading derivatives.
 
If Wall Street did put $50 trillion at risk… and 10% of that money


goes bad (quite a low estimate given defaults on regulated


securities) that means $5 trillion in losses: an amount equal to


HALF of the total US stock market.
 
This of course assumes that Wall Street only put 5% of its notional


value of derivatives at risk… and only 10% of the derivatives “at


risk” go bad.



 Do you think those assumptions are a bit… low?


===================================================

Claim a gram of FREE GOLD today, plus a special 18-page PDF report; 

Exposed! Five Myths of the Gold Market and find out: 

	
· Who's been driving this record bull-run in gold?
	
· What Happens When Inflation Kicks In?
	
· Why most investors are WRONG about gold… 
	
· When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at


BullionVault  

====================================================

Nothing in today's post should be considered as an offer to buy or


sell any securities or other investments; it is presented for


informational purposes only. As a good investor, consult your


Investment Advisor/s, Do Your Due Diligence, Read All Prospectus/s


and related information carefully before you make any investing


decisions and/or investments. –  jschulmansr