Hey guys,

I have been following the TTGD - S&P/TSX Global Gold index, which I believed bottomed in June and it is getting close to breaking out to all time highs.  I think we could get the break out next week and if so it will trend higher for the following two weeks.   If this strong breakout happens, the index will probably shoot up to 480-500, sell your trading position towards the top of that breakout (probably mid Sept).  

If next week it doesn’t break out, then the sideways trading pattern holds and the index could correct to 390 or a 10% discount from here, which would be a solid support buy zone.  Currently it is at 419 and it needs to take out 440 on solid volume, so right now we are in the middle of a 50 point range.

I would suggest taking the next 2 days to bid gold mining stocks that you like on any weakness, stick with the majors and mid size for now, the juniors will have their day but only the good ones will shine right now.  My plan is to take some profits and continually add to good jrs, eventually that jr lottery ticket will pay off in the mania phase later on down the road.

Buying long dated calls on the strong majors should pay off handsomely over the next 6 months, AEM is a great buy and I am adding to my call options.  I think AEM could trade up to $120 by sometime next year.  Major price support and resistance price will most likely be 65, 75, 85, 100, 125.  My strategy with AEM is to continually add to the longest dated call option on any correction and sell my current/closest contract after a few days of a strong rally, just like we had up until yesterday.