end of day update: Saw the nice bull flags forming intra day in most of the big cap issues and with a bit less than 2 hours to go I just figured we had short squeeze conditions going into the close. It is a function of reading the tape. We had that breakdown at the open which got the bears all lathered up for a gap fill on the GDX, but it never happened. So I figured they were under water and didn’t want to hold these in the red positions over the weekend. So I just chose one of the most liquid big caps that looked good and bought 4,000 shares for a 1-2 hour trade. Nice $2,500 90 min return…. just a tape reading strategy

The last 24 hrs has been wild ride, however I interpret it as profoundly bullish. Prairie dog top failures yesterday afternoon in several issues (AGI in particular) followed by a shakeout this morning. Enough to get the bears into short position. Then a nice early session rally. Most issues have been busy throughout the day putting in intraday bull flags. This appears to me to be a great short squeeze set-up.

Just like Eric Sprott’s story of how he inadvertently massacred the shorts in Mag Silver.

What we are seeing before our eyes is a changing of the guard. For 10 years we have witnessed the successful methodology of “buy the dip” in the general Stockmarket. Now it’s “buy the dip” in the gold stocks.

Below GDX faking everyone out bulls and bears alike, but set to explode to the upside. NEM making a nice intraday bull flag

KGC exhibit one on action ready to proceed:

Lundin didn’t get the memo, it just decided to start early