"The history of Eureka lies in its future." - Lambert Molinelli, 1878

DISCLOSURE

The author/editor of the Eureka Miner owns common shares of local mining stocks, General Moly (GMO), McEwen Ming (MUX) and Newmont Mining (NEM); together with benchmark miner Freeport-McMoRan (FCX). Please do your own research, markets can turn on you faster than a feral cat.

Friday, March 27, 2009

Don't Drink the Lemonade

Morning Miners!

It is 6:56 am and it looks like some pretty fair weather for Eureka this weekend with a chance of the white stuff Sunday.

The DOW closed up 21% yesterday (7,924.56) from its 12-year closing low hit on March 9. Some folks are talking about a new Bull Market but the ole Colonel ain't drinking their lemonade.

I think commodities will remain strong for the time being. Dennis Gartman, the "Commodity King", advises people to invest in things they can drop on their feet (and it hurts). Hey, I think we're talking metals! If I could drop enough gold on my foot to break a toe I'd probably forget the pain pretty quick.

Gold dropped $17.5 to $922.5 in early trading (May contract) with a very strong pop in the dollar (up 1.12%). In fact just about everything except our greenback is in the red this morning. No problem, just a little profit taking. Compare the early morning action from our March lows:

Barrick (ABX) $32.47 up 27% from 3/11
Newmont (NEM) $46.12 up 34% from 3/10
General Moly (GMO) $1.32 up 106% from 3/2

Rock on!

Cheers,

Colonel Possum

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