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October 30, 2007

Canadian Juniors Rocketing in Gold Rally
by Michael Swanson

The gold market is on the march again. Not too long ago, a week after the XAU gold stock index rallied to 182 and then pulled back to 175, I warned of a likely drop into the 155-165 support zone for the XAU. I told my WSW Power Pick subscribers that I was not going to add any more mining stocks to my buy list until we saw a pullback or period of consolidation in the XAU. Last Monday the XAU fell down to 167 and bottomed. It then bounced into the end of the week as gold closed at a new 52-week high on Friday while the US dollar index traded to a record low.

After Monday's bounce, I added another gold stock to the WSW Power Picks list. The gold stocks are trading much differently than they have in other bulls runs we have seen in the past five years. In the past, the XAU would correct roughly 10% several times during a bull run. This time the drop off of was less than 8%. Gold stocks appear to be trading in a similar fashion as the DOW from August of 2006 to February of 2007 or oil stocks from March of 2006.

During this time frame, both the DOW and oil stocks traded in a bullish uptrend for months at a time without hardly any pullback at all. This made it very difficult for people who were looking for a pullback to buy to get in. The charts seemed to defy traditional technical analysis. That made trading in and out very difficult. The best way to make money was to simply buy a core position and hold it.

For the next 3-6 months I expect gold stocks to trade in a similar manner to what we have seen since September 17: rally hard, pause, pull back less than people expect, and then rally again. That means there will be huge profits to made in gold stocks. Anyone interested in the gold market is familiar with the names of the big cap gold stocks, and I expect to see nice profits from them over the next few months, but when gold stocks go into an uptrend the biggest gains are to made in the smaller junior mining companies, most of which trade in Canada on the Vancouver or Toronto stock exchange. For instance, I placed one Canadian exploration stock on the WSW Power Picks list on October 10th. As of Friday's close it was already up 17% and I think that's just the beginning of the gains to come from it.

Commodity stocks are the hottest things in the market. You need to think of big cap stocks such a Newmont, Agnico-Eagle, and the rest of the components of the XAU and HUI as the equivalent of Cisco and Oracle during the tech stock bull market of the late 1990's and the Canadian juniors as what Internet stocks were back then - places where you can get make huge returns fast.

Most US brokers give their customers access to the Canadian markets. The problem most US investors face, though, is getting information on Canadian stocks. Few charting programs include Canadian data feeds because it is only a small niche of American investors who even know the opportunities that exist in the Canadian junior market. There are almost 1,000 Canadian mining companies trading north of the border and they are under the radar of almost all Americans.

Over the past few years, I have relied on contacts inside the mining industry and industry journals such as the North American Miner to discover new opportunities in the Canadian market. This has stood in sharp contrast to the US market where most stocks I discover are by looking through 1000's of charts using the popular Worden Brothers TC2007 software.

This weekend Worden Brothers added Canadian data to their new 'Blocks' software. I immediately put it to use. It took me several hours, but I looked through every single Canadian mining stock that does over 90,000 shares of volume a day. I then checked their fundamentals and picked out two stocks that I just bought on the open and added to the WSW Power Picks list. These stocks have great charts and all are emerging producers with low valuations and 300% earnings growth ahead of them.

If you are interested in the Blocks software go to the Worden Brothers website: http://www.worden.com/CURRENTAFPROMO.aspx?AFCODE=201

Click software and pricing. Then go to 'Blocks Strategy Trade Pack'. You'll have to download it and then call their toll free number to tell them you want to activate Canadian Investor.

It is so new that they don't even have it listed on their website yet. But with gold heating up, now is the time to buy Canadian juniors. I couldn't wait another minute so I downloaded the data and went to work as soon as I found out about it. This is the best place to make money in the stock market right now.

Going forward I will look through all of these Canadian stocks again every week to find the best Canadian junior mining stocks for subscribers. If you have been thinking about signing up, now is the time to do it. I will be adding more stocks to this list on a weekly basis, and I truly believe that using this service will help you build life changing profits during the next few months.

In fact, I'm so certain that the service will help you that you'll get a 30 day, no risk, test run. Just try it out and if you aren't 100% satisfied in 30 days just let me know and I'll give you your money back. You have nothing to risk and everything to gain. To start your subscription to WSW Power Picks by clicking here: http://www.wallstreetwindow.com/wswpowerpicksjoin.htm

Michael Swanson,
WallStreetWindow.com

Disclaimer: Michael Swanson is the President of USA Capital, Inc., which provides management, support, and research for institutional investors, hedge funds, and mutual funds. The ChartWizard is also an employee of USA, Capital, Inc. Both Swanson and employees and associates of USA Capital, Inc. may have a position in securities which they mention on WallStreetWindow or any of its services. In such cases, appropriate disclosure is made. Under no circumstances should the information received from WallStreetWindow represent a recommendation to buy, sell, or hold any security. WallStreetWindow contains the opinions of Swanson and the ChartWizard and is provided for informational purposes only. Neither Swanson, the ChartWizard, nor TimingWallstreet, Inc., which owns WallStreetWindow, provide individual investment advice and will not advise you personally concerning the nature, potential, value, or of any particular stock or investment strategy. To the extent that any of the information contained on WallSteetWindow may be deemed investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Past results of WallStreetWindow, the ChartWizard, or Michael Swanson are not necessarily indicative of future performance.

WallStreetWindow does not represent the accuracy nor does it warranty the accuracy, completeness or timeliness of the statements made on its web site or in its email alerts. The information provided should therefore be used as a basis for continued, independent research into a security referenced on WallStreetWindow so that the Subscriber forms his or her own opinion regarding any investment in a security mentioned by WallStreetWindow. The Subscriber therefore agrees that he or she alone bears complete responsibility for their own investment research and decisions. We are not and do not represent ourselves to be a registered investment adviser or advisory firm or company. You should consult a qualified financial advisor or stock broker before making any investment decision and to help you evaluate any information you may receive from WallStreetWindow.

Consequently, the Subscriber understands and agrees that by using any of the WallStreetWindow services, either directly or indirectly, TimingWallStreet, Inc. shall not be liable to anyone for any loss, injury or damage resulting from the use of or information attained from WallStreetWindow.

Copyright © 2004-2009 Michael Swanson

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