Good evening. I've released a new long play on NEM below which I think will do well over the next several weeks. We currently have a couople of short positions to take advantage of continued market weakness and I plan to release more short plays once the market retraces some the recent declines. TCK is in jeopardy of being stopped but I think TGT will be fine on this pullback. I anticipate continued selling in the next day or two and I would be protecting profits against a hard reversal on short positions. We will be able to re-enter short positions at a better price. Please email me with any questions.
NEW BULLISH Plays
Newmont Mining Corp - NEM - close 56.04 change -1.36 stop 52.20
Newmont Mining Corporation (Newmont) is a gold producing company with assets or operations in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. It is also engaged in the production of copper, principally through its Batu Hijau operation in Indonesia and Boddington operation in Australia. At December 31, 2009, Newmont had proven and probable gold reserves of 91.8 million equity ounces and an aggregate land position of approximately 33,400 square miles
Target(s): 59.30, 60.50, 61.50
Key Support/Resistance Areas: 62.00, 59.50, 58.00, 55.00, 54.30, 52.30
Time Frame: Several weeks
Why We Like It:
NEM is approaching a long term upward trend line that began with its November 2008 lows to February 2009. The stock has also broken out above a key pivot level in the $55 to $56 area dating back to 2007. NEM has now turned back to test the pivot level and I suggest we take advantage of the weakness. In addition, if the Fed is going to monetize the country's debt then gold and gold miners should do well and act as a defensive play. I am looking for NEM to reverse to the $55.05 to $54.40 level. We will use $54.40 as a trigger to enter long positions but aggressive traders may consider $55.05. Our stop will be $52.20 which is below the 200-day SMA and the long term upward trend line. I am looking for NEM to bounce up to possibly retest its YTD highs.
Suggested Position: Long NEM stock if it trades to $54.40
Annotated daily chart:
Annotated weekly chart:
Entry on August xx
Earnings 11/3/2010 (unconfirmed)
Average Daily Volume: 7.7 million
Listed on August 10, 2010