AUY,NGD,NEM,ABX,PAAS,

These names are all attempting the same Pattern as the GDX…ORH days. We still have a lot of time left.

Money Never Sleeps….Gordon Gekko

You’re seeing the buying of dollars coupled with profit taking in many high flying instruments.

We view this as price positive the miners mainly because this is the most beaten up sector and money is looking for dividend paying stocks like Newmont again at more advantageous pricing.

Gold…We’re getting friendly to the Yellow metal in this area, however Friday will provide the usual volatility, me thinks it’s too risky to be straight out long.

If the metals are going to hold and rally, I doubt they start up before Friday’s un employment #. This means you need to be in for the # if you want to be Long or risk paying up big after the fact.

The converse is also true…they could smoke it with a big employment# , which means the only low risk way of being long is to buy the 1600 April calls which are trading just under $9.00. That means you can only loose 9 bucks, not 50 in a worst case scenario.

These calls expire 3/26/13. Worst case scenario, with a failure to hold and rally Friday, there should be some premium left to capture reducing your total risk.

Our plan is to buy a 25% position “TOMORROW” giving us one more day of premium erosion.
We will send out a trade alert tomorrow with the specifics pending overnight price action.