Update 11:15

This is just a quick update on the gold mining sector and some company specifics.

The TTGD index is coming to where we thought longer term support should be held at 400 or slightly below, which is where we are today at 11:15 am.  I would suggest reading our Golden Weekly review posted last week which discussed where support would come in and the trading range that we are in.  Today we are close to support for the mining index, and probably gold and silver, these prices need to hold close to this support and hopefully close higher toward the end of the day.  If we get this, then the short term bull is still in place and we could get a strong move in gold and the shares.  If next week the panic sell off continues, then things can get really ugly for gold, the mining companies and pretty much everything else that is investable.  Gold is the last safe haven left and in today's perverse world where the good get punished and the bad get rewarded, even gold will get punished for no reason other than it can be easily manipulated.  What we are seeing is technical trading at its best, gold went to where is should have and has corrected to where it need to and that is where we sit today.  The price zone we are in right now on gold and gold stocks is right at support, if it hold depends on many factors. How far are they willing to paint the tape and manipulate the market so that no one will want to invest in gold every again is beyond me.   They know the only real bull market left is gold and silver and have haven left in town, trust me they want it bad and will do almost anything to take this away from you.

Even looking at the financials, they are star getting a nice lift by mid day.  In a normal world, if the truth was known of how bad the system really is, financials, bonds and insurance companies would be getting kicked around and then taken to the wood shed.  In today's world, it looks like gold will be the whipping boy and he and his followers will be punished for good behavior. 

Look at Keegan Resources, one of picks in our portfolio, the price action on KGN was progressing normally up until this week.  Yesterday, they come out with a positive news release and the market just punished them for good behavior, even today KGN is trading at or below $5.00 and well off the $9+ price you could have bought or sold it at only 2 days ago.  Fundamentally nothing has changed with the company and if anything it has only improved, but who ever decided to use Keegan as a whipping boy in the junior gold sector sure did accomplish what they set out to do this past week.  Who ever decided to distort the price of KGN sure did some technical damage on the charts this week.  Take a look at the 5 day chart and you will see what I mean. 

If you want KGN for a long term hold and can handle the next 2 months, KGN is a screaming buy under 5... who ever is manipulating it, painted the tape yesterday and went thru all stop losses and is now is getting rid of anyone with margin on KGN.  The people who decided to dump shares over the last 2 days have not done anyone a favour, in fact all they did was distort reality and have scared honest investors away from KGN.  Their attempt for short term profits has done damage on KGN and could take a while to repair.  If you have the funds buy and hold KGN under 5, it is scream buy me but the market is still in shock and fear in the gold sector is now setting in.  Be ready with the money and buy companies like KGN on days like today when they have been killed for a couple of days in a row.  Volume will dry out on KGN and the dust will settle, at what price I don't know but that is when we want to start building a good position, when this settles down.