IMO L/T CMR is grossly undervalued and will be a major wealth creator for the patient, with significant resource upgrades coming soon to further cement the Olympian price targets 2009+.
NET effect IMO are S/T downtrend until it confirm reverses thru around 520+ to end the "B" still in progress.
Recent run looks like a tech bounce / short covering combo from the third marker half way toward the fifth. Last minute action at close yesterday saved it from being an outside reversal day, so looks like we have our own PPT watching closely.
So agree with Nav we have greatly underperformed the XRA and remain at the mercy of the market Gods until Oxides production makes us a storm-worthy ARK again.
Meanwhile plenty of trading opportunities surfing the wavelets 330 - 520 broad range. I remain passive in the neutral corner looking for break outside this range irrespective of which way and for signs the market skies are clearing. CMR represents 45% of my investment portfolio comprising only 2 emerging Olympians and cash.
Meanwhile its all FUDGE time in the US whilst the property market is collapsing taking down consumer spending with it and IMO 2008 will be a deflationary depressing year for starters. How long that lasts will determine whether Asia slows down significantly enough to start affecting commodity prices.
On the flipside, IFF Benny and the Jets can print fast enough, we will get a countering FOREX affect. So far the AUD strength is negating any price rises YET foreign demand for our perceived resources "safe havens" from demolition derby USDX is accelerating. Who knows, maybe Oz can remain far from the increasingly madding crowd thru 2008 ..... tho doubt it.
One thing we have to remember is that M3 represents only about 5% of real money growth ....... the majority is actually thru DEBT growth via the banks. So if debts start defaulting and no new is created, we indeed get a money CONTRACTION backdrop and thats happening right now and hence the liquidity squeeze. Unless banks get confident agian to liberally lend out, that becomes (asset) deflationary.
If CMR had kept pace with the XRA, would be sitting at all time highs now, supported by Oxides plant start-up. Instead, we remain vulnerable to shark attack. Surprised we havent yet seen such.
Most interesting to see how we fare in a down market. Great S/T pivotal trader this far. Just remember can get caught in an UPSIDE shock at any time.
IMBOOC
CMR Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
