March Charts, page-58

IF you have been an early bird then you are still in comfort phase where to ride a bigger trend usually require a sacrifice of some ST paper profit reduction to seek an even bigger paper profit. I learned during my time in longer term trend cycle, a holder has to be prepared to ride this out and there is never a guarantee of a profitable LT hold. Time or timing in the market going full circle in any investing discussion.

The problem I see with this sector in general and without further research, there are only 2 local leaders with cash flow (ORE, GXY) so logically any insto will have to invest there through their tight investment mandate. You mention NST previously, my fav gold producer, and in the early days even with handsome cash flow on Paulsen, Instos were mandated not to invest with him because of single mine risk! His Buffet literal approach of 'buy when there is blood in the street' was a genius stroke and I realised even back then this guy is a serious company maker. Those early days would be similar to current PLS conditions as the only news one expects and hope now is "on time and on budget". Nothing else matters.

A lot have been mentioned about shorters but shouldn't the prudent way be to insulate any big sell off through the insurance of hedging? Just a suggestion.

On the macro level on markets in general, I was surprised at the aggressive recovery from the US triggered sell off recently but my view is that the recovery has had its run and price is again retracing for that perceived double bottom before it can recover proper. I am therefore expecting more volatility to appear as we move forward in the weeks and months ahead.

I must say 88c was very tempting this morning but as usual plenty of noises to caution me. Good luck.