Artha News - Appoints Geochemist to Advisory Board

Just a heads up on some Artha Resources news out this morning. They have appointed a highly experienced geochemist to their advisory board. His name is David Cohen and his credentials are second to none.

This is a very positive sign of a strong exploration company being built here when people like this are brought in at these early stages.

Here's the press release :

Wednesday November 04 2009 - News Release

Mr. Todd McMurray reports

ARTHA APPOINTS DAVID COHEN TO ITS ADVISORY BOARD

Artha Resources Corp. has appointed David Cohen to the company's advisory board. Mr. Cohen has 20 years of experience in pure and applied exploration and environmental geochemistry research based in Australia, Europe, Asia, the Middle East and North America. He is president of the (international) Association of Applied Geochemists, head of the School of Biological, Earth and Environmental Sciences at University of New South Wales and was previously chair of the Science Faculty at UNSW.

Mr. Cohen's current research projects include sampling and analytical methods for exploration and environmental geochemistry, environmental geochemical baseline surveys and multivariate data mining.

He lectures in environmental and exploration geochemistry, economic geology, geological data processing and statistics methods, and supervises a number of postgraduate research students in geochemistry. He has been a technical consultant to a number of industrial companies and government departments, and has published over 40 papers, book chapters and major government reports.

Gold Bull Marches On

Just when you thought the record gold shorts were about to take gold back down to earth, out came the long awaited news of IMF selling 200 tons of gold to India for $6.7 billion. As well there is rumours the Chinese will be buying a second 200 ton lot.

It was a slow response to this news and one that had been felt may be a negative on the gold market. When the price did start moving it moved hard and fast , doubling from $7 to $14 within half a minute and seriously squeezed the shorts all the way up to $25 range where it closed solid.

Silver lagged the gold move by an hour or so but then closed up at $17.21 up a decent 70 cents or so. There is a much larger short position out on silver and if gold keeps this up then look out silver bugs, we could be over the critical $20 very fast and the junior silver stocks like my fave Artha Resources, V.AHC will come alive.

The most amazing part was the US dollar was up half a cent which as we know usually means lights out for gold. Should make for some interesting action the rest of the week to see who has the biggest pair to risk waiting out any higher moves or if the sellers will step in at any failure to break $1100.

Strap on the seat belts, should be a wild week.

Freaky Friday

As I Twittered earlier today, "the market giveth and the market taketh away". Just when we think it's safe to dip back in the water out come the bears with a vengence on some lower consumer spending numbers out of the US. As the story goes, US dollar bounces up and the stocks get smoked.

What was remarkable though was gold's resilience. It was only down around $10 at the lowest point and even with the DOW down over 200 points and the US dollar up .40 of a cent it roared back to up $1 then closing down $1.40. We have never seen this play out like this before.

Something is happening here when gold survives that type of onslaught. In the past it would have been smoked $25 easy. The longer gold stays above $1000 the more confident I get long term on the precious metals.

Artha Resources News

My number one precious metals pick Artha Resources, V.AHC, put out some news after the bell. They have hired a new PR firm for Investor Relations.


http://www.artharesources.com/

Bull Fights Back

Was that a rebound or what ? So much for the Goldman GDP call, the numbers surprised by 3/4 of a point to the upside and the market acted accordingly. Short squeeze was an understatement,there was some nasty odors of burning shorts out there as the DOW and TSX bulls kicked some serious bear butt.

Gold,silver and oil all fell into place moving up in grand fashion as the US dollar did a perfect TA bounce off the top of the downtrend channel line. This bodes very well for the precious metals and commodoties moving forward, as the so called bottoming US dollar media stories are a little premature in my opinion.

The chants of the ending recession are now ringing through the hallowed halls of Wall St. but we will keep a cautious eye with an optomistic heart. A Christmas rally would be sweet and after this past year we deserve it.

Blowing Off the Froth

Haven't made many TA predictions lately as it seems every call for a serious pullback when on the ropes winds up with much egg on one's face. But I will say that I saw this one coming as we trade in what I call a "longer term/bear rally since March/ uptrend with range trading gyrations". How's that for stock terminology ?

I could see last week that this market was running out of steam and needed to blow off some of the froth built into higher than expected earnings that sooner or later had to disappoint. Toss in some declining US consumer confidence numbers,Goldman Sachs calling for a lower GDP number (how do they always know ? hmmm),and month end profit taking and you have a correction in a hurry.

We all know the script now, a rising US dollar when on the abyss sees gold,oil prices and stocks get whacked til the buyers slowly step back in.

My main point here is my charts that I use on www.stockscores.com are showing another day or two more of a pullback on the SPY as the TA signals begin to touch the bottom. 102 looks like the next support line.

The question will then be whether or not we tread water sideways for awhile after this froth has been blown off. Barring some geopolitical event, I am thinking we will flatline/range trade rather than any further moves down as the upside expectations seemed to be maxed out for the time being. But as always one has to expect the unexpected as tax loss selling season upon us.


http://www.stockscores.com/quickreport.asp?ticker=spy&x=13&y=15

Strategy

One thing all stock trader/investors have to keep focused on is what is their strategy for making money in this game. Without the master plan you can get lost in a hurry,especially in the venture stock arena.

It's so easy to get thrown off course in these kind of markets and start hop- scotching from one hot play to the other. The problem with the hot stocks is usually by the time you find them they already did most of their run and any remaining profit makes the risk so high that it is not worth it.

That's why I try to stick to a simple plan of searching for companies that are "underfollowed" but more importantly "undervalued" based on the DD of new company developments on the horizon. Once you find all three elements then usually you will make some decent profit if general market conditions are in place and the coinciding sector is also in market favor.


What I try to do is keep my focus on 4-5 stocks max, all with potential to make 100% to 400% profit over a period of 3-6 months. If I can do that once a year then I will be in the drivers seat. If I even make on 2 of them I will still be doing decent.

Not to say I won't play a blue chip, or an option play along the way, but my focus is getting the ducks lined up, planting the seeds and being patient and watching them grow. No brain surgery involved or high priced newsletters here,just solid hunting and digging for those gems laying in the weeds ready to explode when the time is nigh.

Most important is to learn to trust your research. As long as the company's plan is still in motion, then eventually your profits will come. If it changes,then you have to make a decision....but that is for another blog post.