good comments about GDX going in to the last 20 minutes or so. S&P sold down into close and someone was getting out. Who knows?

I try as best I can to have some idea of where the market is going in the next 12-24 hours so that I can buy/sell accordingly.  Often impossible but  probabilities always exist.  Usually true about life anyway, so why not with trading?

I have only ever traded miners, mostly junior.  Used to have a lengthy list, now I've pared it down to a handful.  After all if the sector is going a certain direction, no reason to pay the extra trading charges and the average gains do exactly that average out.

I know most would say that's a piss poor way to trade, but it has worked out for me thus far.  It just means keeping your eye on all matters pertaining to the market more.

On the road, driving through the 60 degree Midwest, I sold my LNG ($ 12.74) at damn near the same time as SW.

Great minds, my friend. But I got you by a penny!

Funny quote from Franklin Sanders tonight:

"Y'all are going to look back one of these days and tell your children, "You know, once upon a time I had a chance to buy silver at thirty-four dollars!" They'll look at you in wonderment, and then ask, "Grandpappy, what's a dollar?""

Hey Redwood, I was wondering what your list of junior miners is.  I just started trading about a month ago so I really don’t have any idea what I’m doing, all I know is that it’s an awful lot of fun.  My current strategy is to hold onto my miners, and then day trade mostly USLV and DSLV, though I also day trade other randoms, mostly found on recommendations here in Pailin’s room, thanks guys, especially whoever pointed out HGT, that was a good one for me, I picked up for 13.9? something.  I don’t day trade every day, usually depends on if I’m working from home or not and if I see anything enticing.  The three I’m currently holding long are Impact Silver, Sandstorm Gold, and Sandstorm Metals (I guess the Sandstorm ones are considered miners), with about 70% of what I hold in Impact Silver.  I currently have most my day trading funds in USLV, I picked up yesterday 47.00, if silver hits 32.75 tomorrow I plan to double down.  I’ve also been watching Tinka and Rye Patch.  I’m also looking to add some drilling, the only one I can find is Energold(they are biggest shareholder of Impact), anyone know of any other  drilling companies?

Santa's Angels

For those who play it, you might want to remember that Santa's next angel is $1764.

The "nearby" angels are:

• $1764
• $1681
• $1650
• $1600
• $1521

That play worked pretty well since the last market bottom.  In particular:

1. The bottom of the gold market in December was $1523.9.   (I think it is pretty fair to call that $1521.)
2. The market went straight through $1600, which acted as support for a couple days.
3. The market went up to $1650 which acted first as resistance, then as support.
4. $1681 was resistance until the big FOMC day, which blew right through it.
5. There's a pretty big step between $1681 and $1764.   We've been rising steady from one to the next.

I guess part of the strategy is to sell when rising towards an angel.

• $1650 offered an OK selling opportunity, but there was not an opportunity to buy back near $1600.
• There was a great opportunity to sell near $1681 and buy back near $1650, if you had the "constitution" to buy ahead of the FOMC meeting.

Buying a dip down near an angel has worked great since the market bottom.

• Buying on dips close to $1521, $1600 and $1650 were all great opportunities.
• There's been no dip yet (so far) to $1681.

Sorry I don't have the time to put together a chart.

Go ahead and poo-poo this if you like -- I won't stop you.

I don't understand how this voodoo works, but it certainly has worked well since the $1521 bottom.  In particular, it offered some very good buying opportunities!!!

How long will this constant up move continue?

Who knows how far gold and silver will continue to rise before some kind of serious correction/  We have not even seen a small correction yet in either gold or silver.  That does not mean they cannot continue to rise.

QE2 is said to have started in August of 2010.  Between July 28, 2010 and Oct 14, 2010, gold rose almost every day with only a very minor correction in the middle.  That is a full 2+1/2 months.

If QE3 has indeed started, how long will it continue?  Until March 15th, 2012?

we now have a decent little head and shoulders bottom in the silver chart, head  at  26,   neckline 34,  measured move calls 42.PROBABLY NEED TO CLOSE ABOVE 35 TO  VALIDATE IT.

Sinclair has explained that these angels have been mathematically derived, possibly by Alf Fields, but can't say for sure.  I'm sure its a logarithmic equation of some kind.   A  complex one probably.

Off to bed for another long day tomorrow.

The formula is very simple:

39 x 39 = 1521

40 x 40 = 1600

41 x 41 = 1681

42 x 42 = 1764

43 x 43 = 1849

etc.

I cannot, however, explain 1650 and some others.  So there must be some other factor or two in the equation.  I'm guessing that moving forward, the other factors are zero.