DOW INDU General markets at Buy from Oversold - Bear Market rally. FXI, HAU.to, DIA, SPX, QQQQ, CZX.v, LUN.to, CUU.v,

This is why we did not like to short the last leg down and preferred to accumulate Rally plays like China FXI, Zinc CZX.v, Zinc/Copper LUNto, CUU.v, Grains HAU.to. Now the chances are that US Dollar will go finally down on fundamentals, markets will rally and then US Corp should prey that Oil will stay below 75, our Lithum ideas will be handy as well now. Commodities is the place to be for us again: base metals Juniors are sold into the ground - for China play and Gold and Silver for "Bet against Central Banks", it is a new fashion among Hedge Funds when they are buying gold.

S&P 500 Rally - PPT back from skiing. SPX, INDU, SPY, DIA, TSE, CDNX, FXI, HAU.to

PPT is finally back from skiing and Saved the day and S&P 500 from penetrating November Low. Maybe they have been discussing their cut with new administration and it keeps them away from trading desks? It is not important, what is important that they are back, Gold is trashed and SPX rallied from November Low forming Healthy Bullish Engulfing candles and Double bottom hopes. Rally should be in favor for a while and could be explosive in nature. Fear VIX will go below 40, US dollar should correct down from formed Double Top and Gold will consolidate around 1000. Time is to move into risk plays: Juniors Gold and Silver accumulating on the pull backs, China FXI, Zinc, Copper, Graines - Inflation plays are bargains among Juniors. After news on Sterling Mining SRLM.ob do not forget that you are playing against all odds giving your money to somebody else to make you rich, do your homework, we here will keep you posted on our dreams, common sense in action and cynical view of things as usual.

Canada Zinc Metals CZX.v CEO buys shares. CZX.v, CDNX

Dr Copper rallied last week from its recent lows encouraged by news from China, Dry Bulk Index is making its come back from oblivion showing that there is some life in Trade after all misery. Zinc looks like it is bottoming and some Chinese smelters are announcing returning of the part of reduced output. Is it the lower point before the Commodity Bull recovery? You will never know for sure before it happen, but it is always necessary to see Insiders buying shares in a Company that you think is going to rise in its capitalisation in a near term. Chinese are ready to pay 0.425 CAD for a 13% in Canada Zinc Metals CZX.v trading now at 0.24CAD, CEO is constantly buying more, PMI in China in January has recovered from recent steep falls in November and December - our Zinc reinflation play could be closer to market recognition. Company has published 43-101 Zinc and Lead resources in BC, Canada next to Teck and Korea Zinc deposit, 3 mln dollars before Chinese will add another 4 mln and no debt. Chinese deal is a subject to government approval.

http://canadianinsider.com/coReport/allTransactions.php?ticker=czx
Jan 30/09
Jan 30/09
Varshney, Peeyush
Direct Ownership
Common Shares
10 - Acquisition in the public market
500
$0.220
Jan 30/09
Jan 30/09
Varshney, Peeyush
Direct Ownership
Common Shares
10 - Acquisition in the public market
1,500
$0.235
Jan 29/09
Jan 29/09
Varshney, Peeyush
Direct Ownership
Common Shares
10 - Acquisition in the public market
1,000
$0.235
Jan 29/09
Jan 29/09
Varshney, Peeyush
Direct Ownership
Common Shares
10 - Acquisition in the public market
1,000
$0.230
Jan 29/09
Jan 29/09
Varshney, Peeyush
Direct Ownership
Common Shares
10 - Acquisition in the public market
1,500
$0.220
Jan 28/09
Jan 28/09
Varshney, Peeyush
Direct Ownership
Common Shares
10 - Acquisition in the public market
1,500
$0.240
Jan 27/09
Jan 27/09
Varshney, Peeyush
Direct Ownership
Common Shares
10 - Acquisition in the public market
1,000
$0.220
Jan 27/09
Jan 27/09
Varshney, Peeyush
Direct Ownership
Common Shares
10 - Acquisition in the public market
500
$0.205
Jan 27/09
Jan 27/09
Varshney, Peeyush
Direct Ownership
Common Shares
10 - Acquisition in the public market
500
$0.230
Jan 27/09
Jan 27/09
Varshney, Peeyush
Direct Ownership
Common Shares
10 - Acquisition in the public market
500
$0.240

DOW general market is trying the Rally mode again. DIA, SPY, QQQQ, TSX, CDNX, HUI, XAU.

Mr. Market is listening to Obama's rhetoric and shaking off bad news coming from the economy, attempt is to hold recent Low retest and turn it a Rolling Bottom on daily. Two Bullish hammers are showing Short Sellers hesitation to play with Obama at the moment. This view is supported by Treasuries Sell off, VIX reversal and US Dollar pleads to let him go Down.

Panic Indicator VIX is signaling Greed. DIA, SPY, QQQQ, TSX, GDX, CDNX, CZX.v, TNR.v, SST.v, MGN, RMK.v.

Watered down by Trillions of freshly printed money Fear is ready to be replaced by Greed again. Please notice that this recent spike in Panic is nowhere near as dramatic as during the last year's lows. While general markets were retesting the lows, Gold broke higher and Gold shares are in breaking Up mode, VIX has made a modest by recent standards move up. Now it looks like making a rolling Top below MA50 and STO is pointing to a move down. Players are not ready to pay excessive premiums on PUT protections and are liquidating their Short positions. Markets are ready for a Push up from Here with any Obama's announcement.

Silverstone Resources SST.v - landing spot for Ben's Choppers

All those charts meditations on the way of things will stay without any positive implication if we will not be able, my dear Diary, to make some money from all what is left from our devotion and common sense practise after mind disturbing dollar levitation. So where are those waters to fish for what will be left of all those trillions coming on after paying bonuses to bail out bankers? We are pleased to help Mr Obama, because we all need weaker dollar and some positive inflation signs. As always we like crazy way of things: like to deploy your ten percent of the capital for one hundred percent return. Gold is a Call on USD going down, Silver is a Call on Gold and Silverstone Resources SST.v is a Call on Silver without any Time decay. Latest deal will double silver revenue in OZ next year and is a necessary step to bring confidence back into the company. You must do your own DD as always and can find some initial information on this blog.

Dr. Zinc and Dr. Copper thoughts on Global Economy. CZX.v, TNR.v

Why commodities? In the inflationary environment price of commodities could never fall to zero. It is determent by Supply and Demand. Demand is going down first hurting Price, Supply is determent by Price and Price is determent by cost of production. Until world is going into Depression with Deflation (credit contraction as a reason and price falling as a symptom) Demand is there at a particular price. Price will be adjusted by marginal project going out of production reducing Supply further. Fear here made this Bear masquerade possible: all commodities Trade is based on Credit. When you can not produce reliable Letter of Credit you simply can not Trade. Watch out what metals are telling us: Inflation is coming and Infrastructure will be the name of the game. Move above 25o will confirm these affirmations.

Another less reliable thought: now everybody is telling we are in recession: we were talking about it last year. With all those money coming into play and Unemployment of 6.5% we are not so far from Recovery even in US with new debased Dollar value.

Dow Jones Industrial DIA - Holding the World on its Shoulders.

Cream of the cream, Blue Chip stock former pride of USA Corp. Most liquid they took the hit first with Margin calls and Redemptions - they will show signs of life first. Strong Reversal H&S pattern is forming. With awful news on unemployment 6.5%, Ford F and General Motors GM on Friday market has managed to rally after two day shock of slipping back into abyss. We are on the one side here: we need reversal confirmation and that 9750 on Dow will be taken back. Risk if that it still could be a continuation Bear Flag pattern if 9750 will not be taken back - then the waterfall.