See previous blog. We had $12 or so as an ideal low but did not necessarily expect it to get their. Of course it did. Now we have a near perfect A-B-C. I saw a dog walking in the woods the other day with one of these cameras mounted on its back. 2 hours of film if you put a big enough memory card in it. These things should not cost $400. At $100 everybody will own one so their is potential. In our opinion this is a buy here (unless it goes lower).
“I may be surprised. But I don’t think I will be.” Andrew Strauss, Cricketer
A stranger walking in the countryside comes across a shepherd and a huge flock of sheep. He tells the shepherd that he will bet $100 against one of his sheep that he can tell the exact number in the flock. The shepherd thinks it over; “It’s a big flock”, he says to himself, so he takes the bet. "973", says the stranger. The shepherd is astonished, because that is exactly right. "OK, I’m a man of my word, take an animal". The stranger picks one up and begins to walk away.
"Wait", cries the shepherd. "Let me have a chance to get even. Double or nothing that I can guess your exact occupation". The stranger agrees. "You are an economist for a government think tank", says the shepherd. "Amazing!" responds the stranger. "You are exactly right. But tell me, how did you deduce that?" "Well", says the shepherd, "Put down my dog and I will tell you".
This was in the latest letter from the Absolute Return Partners.
That was an a-b-c correction, it may get more complex but it should not become an impulse wave. That suggests new lows.
See our previous blog where we targeted $8 as an entry point and $23 or so as an exit point, both based on this expanding diagonal triangle. We appear to have broken out above the upper line of this pattern and should now get to $16 over the next few days. If you are uncomfortable that would be a good point since you would have doubled your money. But if you are a little more venturesome you might just want to stick around till we hit $22+, a little bit under our expected target. You can then brag to your neighbour that you almost tripled your money in, of all things, gold stocks. If he wants to know how, tell him you read this blog. Then if he asks if it is expensive, tell him it is free, at least for now.