Metals, Mining Stocks in Upward Trend in Early 2009

December 26, 2008


In recent weeks, mining companies and precious metals climbed to highs unseen in over 2 months. In a December 11, 2008 commentary, we suggested that our trading stock, RBY would continue to advance beyond $0.90 to new highs by the end of the month and we were accurate. Today, RBY showed promise as it reached $1.15 for the first time since early October.

Our two buy alerts gave traders nearly 50% profits in just 3 weeks.

During the same period of time, gold surged to new cyclical highs and spent December 11th trading as much as 30 cents higher than the price of platinum. The recent momentum comes as economic uncertainty and inflationary policies persist:

- Trust in Banks Corrodes as Goldman Sachs Declares First Loss Ever.

- Fed Cuts Interest Rates to Near Zero.

- OPEC Cuts Production to Stop Sliding Oil Prices.

In light of the higher resistance levels that we've observed this month, we're looking for higher support levels after the next correction. Expect RBY and gold to settle at $.90-$ 1.00 and $800 - $820 respectively.

Cyclical patterns and signals are pointing to the first 2 weeks of January in which we expect the following events to occur:

- Rubicon Minerals will shock investors with gold estimates at its Phoenix/Red Lake Mine.

- One or more larger mining companies will seek to merge with or acquire Rubicon.

- Gold will test the $900 resistance level.

- Oil will stage a huge rally after it settles near $25.