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Breakouts!

With gold breaking out today to a new high, and with Bernanke comments being interpreted as constructive to commodity stocks, there are lots of breakouts in the stocks I own.

This is all good news.  Let’s hope it is for real.  There was an old subscriber service I used to belong to called stocksatbottom.  One of their maxim’s was that you had to be in the market because when you looked at the gains made by a stock in a given year, they typically occured in about 2 weeks out of 52.  How can you predict when those 2 weeks will occur?  You can’t.  Who would have guess 3 weeks ago that we would see these kind of moves in oil and gold.

As is my typical strategy, I have added to some stocks with the break out in gold.  I added to both Lydian International and to Klondex today.  They have not risen yet, but hopefully that is soon to come.  I did not add a lot, just enough to gain more leverage if the move continues.

Lydian is now one of my largest holdings.  I plan to come out with a post describing my reasons for buying so much of a junior gold explorer (usually a risky business) either later today or tomorrow.  I’m not quite finished that post however, so for now I will give you one of the “gold gurus” I follow closely, Brent Cook, and some of his comments on the company.

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