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9/26/08

Trading Post (Bush now considered important in economics edition)

To be honest the major drag on the local markets today are the bonds, and stocks are suffering as a consequence. There are spots of light here and there, but it's that "not money to buy equities" feeling again, and it matters little how cheap they be.

To the reader who bought Jaguar Mining (JAG) under $6.20 this morning for a daytrade; nice going, but I hope you took the 6.4o+ (you know who you are).

Fortuna Silver (FVI.v) is hanging in there. It has cash, and that's the whole ballgame in today's junior market.

Corriente (CTQ.to) (ETQ) is still strong, up at $4.93 on low volume. This is a referendum play, and I really don't know how it will trade Monday when Studmuffin's 'yes' vote is confirmed. I'm just too chicken to buy anything today, even the good ones; that's the bottom line.

Freeport (FCX) is off 9% on heavy volume. For some reason this has something to do with Agrium's downgrade today, but I can't for the life of me understand the connection (apart from 'let's panic about commods again, sheeple'). This kind of PPS action vindicates me and my current non-participation (or at least I like to pretend it does :-).

Mercado Libre (MELI) is down at $22 now. This thing does have a bottom to it, and it's more a case of "when" than "if". It's not fabulous, but it's not that bad. It has growth and as close to a sector monopoly as is possible. Costs are low and importantly it makes a net profit. The chart also looks like one of those falling wedges on slackening volumes that Biiwii Gary gets all hot'n'sticky about. Have a look for yourself, but that looks rather buyable to me.

(click to enlarge)