Is Gold Due for a Pullback?

Well, its the end of the summer... The harvest moon is out. I think its time to take some profits. Reap in the summer's hard work for the fall season. :)

I've been calling the most recent gold bull since early July saying that gold was gearing up for a nice summer run and that it would start near the end of July. I had correction targets of $1170 and $1140 and gold hit right in the middle of that near $1155 before reversing and starting a new bullish trend higher. Since then gold stocks that I have been posting about have made record gains over that 2 month period. ATC has more than doubled from the $1.87 price its in the portfolio at to a high of $7.58 (305%). Kaminak over the same period went from $1.50 to $3.85 (157%). Northern Tiger we posted about went from .26 to .72 (177%) and is currently sitting near that high at .68 as drilling is progressing well on the 3 Acre property. I expect Northern Tiger will continue to push higher in anticipation of excellent high grade drill results. The Yukon explorers are doing well, very well indeed as they discover widespread gold on their properties.

Its not just the Yukon that is hot. Yes gold fever has certainly hit the Yukon in a big way but others that we have posted about have done extremely well. Creso Exploration was one of my first picks this summer went from a low of .28 in early July to a high of $1.07 (282%). Creso remains one of our top picks and at a current price of .90 looks like a juicy buy and bottomed today at $0.85. Gold Canyon was another I posted about in early August and went from a .36 low the following trading day to a high of .89 cents (147%) early Tuesday morning incidently GCU announced a .45 PP tonight so at .74, I expect it to sell-off significantly. Bayfield Ventures BYV.V, I also posted about in early august after they announced a 20,000 meter drill program and went from .41 to $1.38 (237%). Bayfield has had an excellent drilling program demonstrating that the ODM zone on Rainy River's property extends in a very economical way well onto Bayfield's Burns Block. BYV, its just a matter of time and at $1 is a solid buy knowing full well that its just a matter of time before RR has to buy them out to develop a mine.

On my scorecard... in 2 short months I have 6 stocks that have gone at least 100%. 1 went 300%, 2 went 200%+ and averaged 260%, 3 that went just 100% averaged 150%+... Its been a great summer for Western Investor and Beat the Market Stock picks, hopefully pointing you guys in the right direction, bringing you the best returns in the market.

I also have to give honorable mentions to FAU, PEM, DEC all pennies that I have posted about having successful programs that are still gearing up.

Also VEN and CSI have done exceptionally well with VEN almost doubling from a $6.50 low to its current $11. (77%) CSI hung with VEN for awhile but VEN has really takeover as a premium south american gold asset. EAS has gotten left in the dust even with a successful program expending Miwah because of the environmental ban in Indonesia right now. This ban is aimed at the notoriously bad pulp industry and not the mining guys. Once everything gets sorter out. I am sure EAS will become a mine in Indonesia. EAS is a solid buy on weakness and anywhere in the $5 to $6 range will pay huge rewards.

There are many more in my public portfolio on my blog and over there on stockhouse that have made similar gains. I can't talk about them all so I try and focus on the best. I brought you the White Gold District, first with Underworld last year and now this year with my favorites KAM, ATC and NTR. I showed you the emerging Rainy River Gold Camp. The Shining Tree camp where Creso made their discovery last year in the Timmins District.

Seasonally, after such magnificent 2 month run though, all good things must come to an end.

When stocks have made such huge gains and over the last 2 months you know that a serious pullback can be expected. Maybe not serious but lets say and extended 2 -3 week sell-off. Goldman's $1300 target is close to being hit so you know there will be a wave of sellers coming in at $1300 the first time it hits hit. Combine that with what will be market weakness going into the beginning of October but not a frantic sell-off.. I see all asset class weakness. So going into the next few days I would be a seller of gold as well as all asset classes. I expect that gold will resume its uptrend at a mark between $1260 and $1270 and peak at $1330 later this fall. Before it pulls back again time for Christmas. I could be wrong and maybe gold goes parabolic and hits my $1330 target in the next few weeks but I think because of the trend gold is taking for the long term as well as a psychological wall put in place by Goldman at $1300... I think it is almost time for a little sell-off. We will see next week. I bet it head fakes a little above $1300 next week before we go down.

As you can see most of my picks don't take off immediately... but when they do... they sky rocket!

Happy Trading... Happy Investing...

Hopefully a great summer for you all. :)