A post I like from another blogger

More and more the juniors market is giving me quality laughs.


I got a good laugh from this post by PS Dave over at Vancouver Venture. I can imagine the group of executives sitting around in the Vancouver board room thinking of the best picture they can paint with the shit they have to release to their share-holders.

"accounting purposes"....I'm going to use that one...

Miners, explorers, ETFs and the gold price

If the miners fell when gold broke through $1400, what do you think will happen as it falls below $1400? If there is anything that those of us in the junior sector have been able to make sense of these last 2 years its that everything sends the price of PM stocks down. Whether its good or bad news doesn't matter, only depends how much.


Everything I know of is down today...not that I should find that unusual in any regard, but still.


Friday is usually a pretty lack luster day anyway so may just leave my computer and go out for the day.

GDXJ

I don't normally watch the GDXJ because its performed pretty poorly. That being said, I've started watching a few of the indexes and ETFs more closely as we near the "bottom". I created a simple trading channel during the end of June to watch the action for GDXJ... has been pretty true since then, with a minor break in early July (note it briefly played the role of the resistance). I have a feeling that after this third attack, which broke on low volume, the next movement will likely be dictated by golds ability to stay above $1400 then any technical trading.


Note how upon breaking the support level it retested it before breaking through and staying fairly true to the channel.

Sabina Trading

Like I've said over a million times, favorite stock to trade.


I have been doing some minor trading, buying at $1 and selling at around $1.40. This worked well the first two times as the chart seemed pretty simple to read. Generally I'll trade that if a stock breaks a R level on its 3rd attack by more than 3.5% I'll go in long. Volume is hard to judge...sometimes I feel that its the only thing that means anything and other times I feel that it means nothing.


That being said, at $1.42 it bounced back below the $1.40 line. Yesterday, it fell a good 15%....but then again so did almost ever gold/mining stock worth owning even with gold up around $20 to break the $1400 mark.


So, here we are today, up 4.6 percent so far. I'll be watching to see how this behaves closely.


UPDATE: Closed down, like a good deal of the gold stocks, at $1.26 today. As an aside....always nice to watch the senseless dumping that goes on near the end of the day with the GDXJ. I really would have thought that with gold breaking strongly through the $1400 mark we would have seen a big lift in the juniors. That being said, the majors usually turn before the juniors.

The Wacky World of The Canadian Junior Resource Market-crap

Every now and then, you get a story that makes you laugh a little....


Anyways, anyone who has read this blog before (so...no one) would have read a write up i did on Sphere Resources a while back. A penny stock company trading on the NEX with some could be interesting properties. Here's a quick read http://juniorcanadianresource.blogspot.com/2012/08/sphere-resources.html


Well....In case you haven't been following, which I'm sure you haven't, they announced in April that they will be pursuing a $10 million private placement through secured debt offering. They don't have a lot to offer, but thats what they are doing non-the less.


With about a fifth of that amount in accounts payable, 4 months until they loose their ability to earn in interest on their pokerflats/ziggurat properties, and the horrible market conditions right now...its hard to imagine that this will close.


That being said....Imagine my surprise yesterday when I checked on it before closing and saw a huge amount of volume compared to normal....just over 10 mill shares traded before closing. I thought that maybe somebody got wind that the financing had closed, but nope....

turns out the guy from Investors stock guide dot com was on BNN and mentioned them and how they have their fingers on all the right properties. http://watch.bnn.ca/#clip990025


Disclaimer: I have about 20,000 shares in sphere I picked up from trading it when they first announced the financing, and then the 3 subsequent updates that always created more volume.Flipping pennies....flipping pennies...


UPDATE: Out of curiosity, I emailed management the other day asking how they plan on paying basic fees with less than 10k in the bank. I was told that management has been paying for fees out of pocket, and that it is seen on the balance statement with accounts payable to related parties. Cuts the liabilities by quite a bit. Exchanged a couple of emails with the CEO in regards to the Poker Flats property. Nice guy.

Trading SBB

Once buzzing around $8 at its high, my favorite northern Canadian project is in the dumps (as far as sp is concerned). That being said, there seems to be a number of individuals trading this thing quite successfully. The latest zone of resistance seems to be around the $1.40 range, with a weak support level at $1.

I saw it move up, and close, at that level yesterday and watched this morning, and sure enough bounced off that level by a good 4%. This is the third attack at this level so we will see in the coming days how it plays out.Interestingly enough, the historical charts don't show any major buying at this level, even going back 4 years (note: highest volume in the last 4 years has been at 4 dollars)