TSX Composite breakout

The TSX was about to make a triple top at the 11,500 range but has broken out quite nicely over the past few days. See the following chart:



Notice the triple top was in a slight downtrend. The first top at 11,585 the second at 11,533 and the third at 11,486. However, in the past week, the TSX has soared to a close of 11,652 today. This breaks the previous downtrend and I see the TSX going up strongly from here at least temporarily. Watch for the TSX to reach the 12,000 range. I suggest picking up some HXU:TO for 2x the move.

Quadra Mining Looking attractive (QUA:TO)

Get ready to back the truck up on this one. Today we see QUA trading below 13.50, it is a good time to start stepping into the stock slowly and finalize your position in the 12$ range if we get there! Good luck on this one.

Quadra Mining (QUA:TO)

Quadra reported ok earnings... nothing special. Sold on Monday. Looking for a re-entry point near low 13's high 12's if we get lucky!

Quadra Mining Q3 Results Monday (QUA:TO)

Stay tuned for Quadra Mining Q3 results on Monday. With gold and copper prices having risen so much lately, we could see a strong boost in earnings for this company. I had previously said to buy this in the 11 dollar range and sold at 15.50. However, there may be a reason to get back into this one if the results are really good!! Keep an eye on this one!

Recent stock market behaviour mirrors that of 1929

Remember what happened about 80 years ago? The 1929 stock market crash is famous as it marked the start of the Great Depression which lasted nearly 10 years. Many think this was the biggest crash of all time... See the following chart (taken from http://stevekoerber.wordpress.com).



What happened from 1929 to 1932 was a very deep bear market. However, within that secular bear market, we saw many massive rallies.

If we compare to what has happened recently in the Dow and the TSX Composite, it seems to be mirroring exactly the chart of 1929. Take a look at this Dow Chart...



A more than 50% drop from the highs to the March lows!!! Followed by a 50% rally which ended last week. In the past few days the Dow and the TSX have been pulling back sharply. Is the 50% rally from March simply a bear market rally? One of many to come in a possible secular bear market? Unemployment is still rising in the US and the US Government is in unimaginable amounts of dept!

If we continue to mimic the 1929-1932 stock chart, the next stop on the Dow will be in the 6500-7000 range within a few months from now.

Be very careful here. I would advise buying some very defensive plays and hedging against possible downturns.

Mercator Minerals, Ltd. (ML:TO)

I've written about Mercator before when it was in the 2.40 range. Now we stand at the 2.90 range looking for a breakout here. If Mercator can break through the 2.96 level and stay above that, I see the stock breaking out well above the 3.00 mark. See the chart below for more details:



Notice that the uptrend outlined in red is still in good shape. We bounced off it a few days ago which was an extremely good buying opportunity. Anytime we get close to that red trend line, I suggest picking up more shares. The short downtrend outlined in pink was violated yesterday with the nice little upward move. Now if we can break above that previous black hammer candle and close above it, we are in position to move much higher. This one is looking very bullish right now. Watch it closely!

Vast Exploration Inc. (VST:CVE)

Vast exploration is looking very nice here. The buy range was hit a few days ago below the 70 cent mark. This was a stellar opportunity to load up the truck on this play. The candlesticks formed after that dip below 70 cents indicate strong bullish signals. See chart below for more details:



I wouldn't be surprised to see VST break out above previous highs here and reaching the 1 dollar mark shortly. Stay tuned on this play. It will be exciting.

Apple Inc. (AAPL: NASDAQ)

Apple is a hot company with tons of products which consumers are flooding to stores to buy. With Steve Jobs back on the scene, we can expect this stock to move higher quite nicely. It already had a big move from the 170 range up into the 180 range. It looks like it will continue to go higher breaking the 200 level. This could be a great short term trade for a 10% profit. I don't suggest being in this one for the long term since tech stocks are generally not good long term plays... you never know when they will drop 50% on you simply because their products are not "hot" anymore. See the following chart for more detail:



Notice how the downtrend started in 2008 with violent bear rallies. That downtrend was officially violated in 2009 delimited by the orange oval intersecting with the red line. It's been on a nice uptrend since and looks positive for breaking the 200 level before year end. I rate AAPL as a buy here.

Banker's Petroleum (BNK:TO)

Banker's petrouleum is breaking out nicely today. It's been stuck at 3.90-4.00 for a while recently now moving up very nicely well into the 4 dollars. This one could move quickly. Watch it closely!

Quadra Mining (QUA:TO)

"* Macquarie raises Quadra Mining (QUA.TO - news) price target to C$20.50 from C$15.50" (Reuters). These targets are almost never reached. Thus I would make my own target for this stock at 15.50$. That is the level at which I will begin to sell.

With this news, Quadra Mining's share price blew past the mid 12's up into the mid 13's - up 82 cents today. See the following chart for more detail:



With strong copper and gold prices amid a bull market, this stock should perform very nicely which is why I had previously recommended QUA:TO. The chart looks fantastic and they are likely to see very strong earnings this quarter. Stay tuned for more updates.

Horizon's Beta Pro Natural Gas 2x Bull ETF (HNU:TO)

HNU Confirmed uptrend! Rally is in full force here. It's not too late to profit from this move. I would much rather be putting my money in at this point than back when HNU was trading below 1.70. I am much more confident in the direction of this stock right now which makes it less of a gamble. See the following chart for confirmed uptrend.



Notice the bullish white candle that formed today. Yesterday's candle made me think the rally wasn't strong but today's long white candle has confirmed this rally for me. We could easily see 2 or 3 nice long white candles and see HNU trade close to 4 dollars. This could be a huge move even from today's prices. It's not too late to hop on this one, but be very careful as the long term trend on HNU is still down. This is simply a short term bounce. I recommend getting in now, and selling in the high 3 dollar range. Good luck with this one.

Vast Exlporation Inc. (VST:CVE)

VST had a great run recently breaking out through the 65 cent range and soaring to over 90 cents at one point. This one is now reversing here as it is due for a pullback. See back at my post on September 2nd showing the confirmed breakout candle. This was the start of the run up and we see volume picking up nicely. See chart below for up to date analysis:



Notice the breakout as I mentioned back on September 2nd. Then we see a great run up with huge volume on the long white candle day. At the top we see a reversal doji candle. These candles are usually a strong indication of a reversal and in this case is very bearish. Followed by the hammer black candle which breaks the last level of support, we may be in for further downside. The pink circle is the range you should be buying. There is stronger support here and it's where the last breakout occured so look for strong resistance around here. Get ready to pick up shares around this level for the next run up which will probably break through 90 cents and higher. This is an exciting play, keep it on your radar.

Horizon's Beta Pro Natural Gas 2x Bull ETF (HNU:TO)

Natural gas is on almost every investor's radar these days and people are trying to time this thing for a rebound. You've probably heard this before but I will mention it again. Never try to catch a falling knife... And I believe that saying holds true for natural gas still today. HNU had a sharp rebound of near 20% on Friday... lets have a look closer look using a 5 minute candle chart.



Taking a look at this chart we see a clearly established floor for the stock around 1.65$. The stock was moving nicely on Friday then it ran into a ceiling at the point where it broke down on Thursday. However, the stock recovered nicely and pushed strongly through the resistance and even closed above Thursday's open. That is a very bullish sign. At this point it is hard to confirm a reversal for sure but things are looking quite good.

Let's have a look at a daily candlestick chart for HNU:



Note that HNU is still in a steady downtrend, but that Friday's white candle closed above the Thursday's black candle. This is a good sign, but since the overall trend is still down, we probably need 1 to 3 more daily candles to confirm a reversal. It is still too risky to step into this in my opinion. Keep it on your watch list -- I'm watching it closely myself.

Questerre Energy Corp (QEC:TO)

Questerre is a junior oil and gas company. They are based in Canada and do exploration and development projects. This is a very attractive play as Oil prices are making a comeback to strong prices.

I like this junior play because it will likely benefit strongly from the market rally. Juniors always tend to move higher percentage wise than the market in both directions. That is, they are more volatile. This is good when you are running up with the stock, and bad of course when it starts to go down. See this chart for a better picture of what we are dealing with here.



The stock seems to be in a steady upward channel which is about 40 cents difference from the top and bottom of the channel. Since the stock is trading at such low prices, this indicates extremely high volatility. You can capitalize on this by buying when the stock is near the bottom of the channel (lower red line) and selling near the top of the channel (higher red line). Note that the volume has been very high on recent moves higher (see orange ovals).

Overall, the stock looks very healthy. My guess is you will see a pullback to the 1.60-1.75 mark in the near future. That would be a tremendous buying opportunity for this play. Ride it up until around 2.00-2.15 and take your 25%+ profit.

Stay tuned for more hot stocks on Savoie Stock Analysis.
Cheers!

Gold is about to skyrocket!

Devaluation of currencies across the globe have rendered paper money close to valueless. It has been repeatedly said that gold is the only true currency and when all else fails, gold will survive.

In a depression, recession, or any stock market collapse, gold has been known to hold its own. Anyone who has owned gold over the last 1-2 years has not seen a depreciation in their asset. In fact, it has appreciated.

See the following gold chart from kitco.com



Gold has been making a flag pattern delimited by the blue dotted lines. Notice that it keeps bouncing off near the 1000 mark. However, note that the lows continue to get higher. So there is a consistent roof, but the floor keeps rising. In the market panic in 2008, gold broke the bottom of the flag but thats OK since it was market capitulation. The technicals for the flag pattern are still valid. Once gold breaks the 1000 mark, we will see it shoot up very quickly to never before seen highs.

Gold has been sitting on the launchpad for quite some time and is about to skyrocket to very very high levels. Trust the only true currency... BUY GOLD!

Copper Price Very Bullish

Copper has been very bullish lately. Demand in China is not expected to slow down any time soon. In fact, it will probably pick up. Housing starts in the U.S. are climbing and infrastructure spending across the globe is fueling the demand for materials. Commodities are a great place to be, especially copper which has been beaten down so much. Take a look at this 6-Month copper chart. See more charts at www.kitco.com

Mercator Minerals, Ltd (ML:TO)

Mercator Minerals is an intermediate stage mining, exploration, and development company. They specialize in copper. Currently, they have a producing copper mine in expansion. See chart below for technical analysis.



This is a very interesting play. The chart is in a steady uptrend. It appears there may be a consolidation to occur in the next month or so similar to the consolidation in May/June. This is a good time to accumulate a position. After the consolidation along with strong copper prices, this thing could really shoot up. Stay tuned for a 3.00-3.50$ price within 6 months.

West Timmins Mining (WTM:TO)

West Timmins Mining is an intermediate gold and silver explorer/producer. This stock is another hot one to watch. Notice its bullish 'A' pattern. See chart.



Gold and silver prices are still in an uptrend, so the intermediate explorers and miners here could be in for a sharp bull rally if the market picks up. Watch to make sure the stock doesn't dip below that 2$ mark. If it does, you better get out. I suggest a stop at 1.94.

All in all things look positive for this one. I rate it a BUY in my books!

Vast Exploration Inc. (VST:CVE)

Vast Exploration Inc. is getting lots of hype lately. As one of the most talked about stocks on stockhouse.com this one is worth taking a look at. It is breaking out very nicely. See the candlestick chart below.



The recent candle has broken the previous high set on August 25th. This is a very bullish sign. The pattern in the pink circle is a very bullish pattern and suggest this stock will break out to further highs. See the white candle on August 24th accompanied by massive volume.

This one is going to move quick. Watch it closely.

Horizon's Beta Pro Natural Gas 2x Bull ETF (HNU:TO)

Natural gas has been on a steady downtrend for quite some time now. From 13$ down to below 3$ recently. Following this downtrend is the HNU (Natural Gas Double Bull ETF). This ETF has been hit hard recently by the sharp decline in natural gas prices. Take a look at the chart below.



The red lines show a steady downtrend and no signs of bottoming out. The pink lines show support levels but they are consistently breaking down to newer lows.

Why bet against the trend? There are tons of natural gas deposits being found every day and the real problem is where to store all of it? If it cant be stored, it must be sold, its a competition to liquidate inventories and the best way to compete is to lower prices. They will continue to fall in my opinion....

Why not invest in HND:TO? Double Bear Natural Gas from Horizon's Beta Pro. Look at this chart.



The HND:TO chart looks fantastic. What's not to love about this chart? It is in a steady uptrend and appears to have just broken out to even higher highs. Technically, this stock doesn't look to be done its uptrend quite yet.

Don't bet against the trend. The trend is your friend... ride the uptrend until we see significant signs of a turn around. Then move into HNU:TO and ride that one back up. You could easily see returns in the multiples on your investment.

Banker's Petroleum (BNK:TO)

Banker's Petroleum is an oil & gas company in a high growth stage. It is largely institutionally owned and trades on strong volume consistently. This is a stock to watch as it has seen a huge run up recently. If oil prices stay stable around 60-75$, this company will make mega profits. Let's take a look at the chart.



Notice the enlarging channel define by the red lines. The volatility in this stock is huge and it appears we could see a massive correction down to the 2 dollar range, or a breakout to the upside to about 6 dollars. The pink line shows very strong support in the 1.75-1.80$ range. It would take some catastrophic turn of events to pull the stock below that range.

The pink ovals show intermediate support levels. It appears BNK:TO is entering another intermediate consolidation phase and is getting ready to shoot up to the 5$ mark very shortly. I would recommend playing this one by selling in the 4.60$ range to capture a nice 10%+ move.

Quadra Mining (QUA:TO)

Quadra Mining is a copper miner with 80% Copper, 20% Gold. This is a very interesting play fundamentally. But more importantly, the stock chart has great technicals. It appears to be in a strong upward trend.



Note from the chart that it is in a strong upward trend. The stock will likely trade within the red lines. We have approached the bottom side of the red channel and will likely see a move towards the upper end in the short term. This likely means a short move towards 12.50 or 13.00 is to be expected.

Also, see the pink lines that show strong levels of support. Near the 8 dollar mark there is a great deal of support. Also, lately, there has been strong support at the 11.00 to 11.25 mark. The stock will probably consolidate here before its next move up.

Keep an eye on this one, its likely to make good money in the short term as copper prices reach new highs as well.