Readjusting by selling some

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Joined: 11/16/2010 - 14:21
Readjusting by selling some

I suspect that we will see some profit taking tomorrow (Friday)on the miners. Broader market is still overbought and we're moving into a Feb. 9th, 30 year Treasury offering that may pressure the market. And, I had gotten overextended on some of the smaller caps by averaging down during the last few months.

So, I decided to sell some SVM and MFN at small losses to free up some more cash in order to reposition into some other producers and juniors after a correction. Don't know if we'll see any major correction but after the last two days I do believe I'll be able to get some better positions than those I sold for a longer run this year.

I'm more of an investor than trader but I'm learning from many of you how important it is to pull some cash out of the market in order to get back in at better positions.

I'm holding those purchases in miners such as AUY and GG that are at good values because I don't think I'll be able to pick them up at those levels again--at least over the next few months.

kaibo888 (not verified)
Possible bullion profit taking

Bullion is likely to see profit taking as well. I hope we don't see a major correction occurring but anything is possible. This market is largely driven by the US as NYSE opening times are where we are seeing the majority of action. Asia-Pacific markets are barely touching the sides north or south in this current 7-day swing. This is largely due to the Chinese sitting it out it seems. Although the banks remained open for general transactions, the trade and security centers did not.

Barring an early correction today Beijing time (CST), from a long period of observation of Friday trading, a possible scenario today could see: profits taken across the Euro-London trading times followed by inflows leading up to a peak around lunchtime 11am to 12 midday NYSE time. This can be a somewhat regular pattern. However sometimes profits are hit hard early on in the NYSE swing. It is likely that PMs will find 'safe haven' for the weekend so 'one more bite at the cherry' before a major correction occurs is highly possible. We could see new highs reached this evening if current ball-park' levels are maintained around or above 1680 for gold and 32.80 for silver. This could indicate a drive for the max as investors and traders aim for maximized benefit. If a correction does not occur then early next week could see action as well either way.

I agree that investor hunger to take the profit whilst it is there will trigger some outflows today with a possible triggering of stop-losses if it goes below the above levels I quoted. I will reduce also my volume to attempt a swing back tonight if it occurs. Even as I write this some outflow is occurring as the tide recedes.

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