chart: bollinger band, page-7

Jagmans,

Thanks for your response.

I understand your feelings but markets will do what markets want to do. Afterall, they are simply made up of people like you and me. If we, as investors, get nervous about stocks specifically, as opposed to physical gold which does not carry with it debt, management or any of the strategic decision processes attached therein, we may decide to sell them irrespective of whether they are bank, gold or industrial stocks. The investor may feel safer with their money under their mattress! What ever the case, sometimes there is no logic to the way markets behave. That is why so many of us tend to get it wrong and in bear markets and can often be financially hurt or in some cases, lose the lot.

You wrote:

"US market drops 2% and CQT drops 10% even when GOLD is up. This is certainly worth commenting on because it shouldnt be so"
Things, including markets are as they are. Just as you may say something shouldn't be, I may be prompted to say that under the circumstances,nothing would really surprise me.

"Forget about the sub-prime crisis etc because in order to quantify CQT you need to use the GOLD price and at the moment it is higher than yesterday. The only thing relating CQT with the current econonic crisis is market sentiment"

Since gold is deemed to be a form of currency, any negative impact in financial markets has the potential to effect gold related entities. Additionally, I refer to the gold cycle addendum which more or less states that in the early stages of a gold bull market, gold stocks do particularly well, often appreciating many multiples. In the latter stages of a gold bull run, despite the continued rise in bullion, gold stocks tend to underperform. Um? I would think that to quantify CQT given its preliminary stage of development ie exploration phase, quantifying CQT in terms of SP would have a great deal to do with both the price of gold and the forces influencing the broader market feeling in a macro sense and the obvious flow on effects. I am not sure of the merits in suggesting that the SP performance of CQT, just because it has enormous potential has nothing to do with the subprime issue. Not that it matters but I would not agree with that view for those reasons articulated above.

"I agree with your Citigroup comments but are you suggesting the same is going on with CQT. I hope not because I for one am all in on CQT"

I am not at all suggesting that CQT is not behaving transparently but merely wanted to highlight the possible domino effect of events that eventually could influence the performance of junior resource stocks such as CQT and other stocks as well despite the fact that price of gold is trending up.

I agree that CQT has enormous potential but the question I am unsure of is where we are at in the current gold market cycle? I do not claim to know the answer but process of the past can sometimes assist us in predicting the future!
Like you, I am long in a number of issues including CQT and feel the strain but at the end of the day, markets will move the way they wish and the one given is that nothing is certain.


Great day to you


ciao