StockBullz.com

Looking at the RSC chart below, I think the stock may be undergoing accumulation again.

If my analysis is correct, this is the 5th accumulation period for this stock. After every time period like this except one, the stock has broken out and reached new highs. The gains ended with a big volume spike (distribution) that signalled the peak for that particular rally.

The stock then gave back some gains and began a new accumulation period. These can be identified by low volume and very tight trading ranges. These characteristics usually signify that there is some professional buying and controlling going on.  

I myself might establish a small speculative position in RSC because it really seems to be setting itself for a breakout soon. I have no idea exactly when, but I think it will coincide with a very positive news release.

The only thing I have to decide on before buying in is a stop loss point. Usually I simply let the 30 day moving average be my stop loss but this price is below that figure.

Aurelian Resources is a company that I have mentioned briefly in the past couple weeks. The chart is madness and I expressed concerns about such quick and such profound share price movements.

However, as long as the price stays above the trend line, I cannot bet against it. I am not smarter than the market and right now the market is telling me that the share price could still go higher.

The thing that I still haven't seen yet is the distribution by the pros. I have identified the accumulation phase in the chart below but to me, the distribution phase is still to come. It could be tomorrow or next week but I'm guessing it will be more towards the beginning of september. Why?

Well ARU's $20M private placement holding period expires on August 28th and sometime around then could be the distribution phase. I am speculating but what level headed individual wouldn't want to cash in 10 bagger gains off their private placement only 4 months ago?

It looks like the Venture market has finally reversed its downtrend today. I think a new uptrend has begun. I'm not going to try to predict how long it might go on for but we are still 24% below the peak in May.

An important level that we must pass before this though is 2863. That is just a resistance line and if we pass that, the next level is the 3292 level. And if we pass that, we're going much higher again.

Keep an eye out for those two levels but I think now is a good time to start buying some juniors in small quantities. If we pass the 2863, then you average up. And if we pass 3292, then you average up again.

But don't think that we will be going up straight to the moon. Keep watching the charts for the next trend reversal and that will be the signal to sell most of your positions and lock in the gains.

I just finished reading a tiny little 100 page book by the title of "The Story Behind Canadian Mining Speculation". It was written about 50 years ago by T.H. Mitchell and it should be a must read for any current mining speculator. If you can get your hands on it that is. Try searching for it at your university library because that is where I found this copy. Anyways, here are some great bits of information that I got from the book:

It should be clearly understood by the Canadian investor that the majority of the "penny" stock companies are worthless and always will be worthless. This has been proven time and time again. Yet their stocks have a definite value as a speculative trading medium; in other words, the stocks themselves are not worthless so long as somebody is willing to buy them. Thus, one has to be pessimistic about the possibilities of the companies, yet optimistic about the profit opportunities which their stocks present. And these are the sentiments which guide the professional traders.

MEXICO CITY (Reuters) - For all the talk of the rise of Latin America's left, Mexican presidential hopeful Felipe Calderon could show on Sunday that, while unfashionable, U.S.-style conservatives can still win hearts and minds.

Years of stuttering market reforms under outgoing President Vicente Fox from free trade to a credit card bonanza have taken root among many voters who fear leftists so popular in countries like Venezuela and Bolivia could bring ruin.

Leftist Andres Manuel Lopez Obrador is a slight favorite in Sunday's elections but polls are so close that a win for the Harvard-educated Calderon, promising more foreign investment and pro-business reforms, is a real possibility.

I think that a win for Lopez would make mining executives with properties in Mexico just a little uneasy.

If Lopez got influenced by Chavez, then maybe he would also want to nationalize the mineral properties that are so valuable.