Monday, March 1, 2010

Tanzanian Rty Explr Co (TRE)

TRE provides an exellent port hole to the conflict building within the gold mining space. Many investors have come to believe that the gold shares, even the good ones, will fail to realize their leverage to gold despite the lessons from history. There are others, though, the ones that control the tape, that are quietly accumulating their position for the coming mark-up phase. The conflict appears onside because on side is vocal while the other, quite wisely, is quiet.

Following symmetry, TRE tapped out of the three taps and out in January. This was confirmed by sharp, mini-run in late January that was followed by the "Hit". Hits, often well organized, suggest that run needed to stopped. Stamp out the fire before it turns to a conflagration, so to speak. And, so is was. The money wasn't ready. The REV, cumulative force of the tape, however, reveals the true bias within the conflict. The force behind the tape is increasing. It has already clipped the Barron's gap and the first tap.

"The violence in gold (gold shares too) will light your teeth on fire, Jim Sinclair" - that's about 1670C. Get ready.

Tanzanian Rty Explr Co (TRE)

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