I am putting 15% trailing stops on mining stocks!

Folks,

Here is the latest in over night trading of gold in Sidney and Hong Kong. Currently, gold is 912.70 and silver 16.91. Both are looking weaker than I had thought they should be.

This has been another gut churning correction for the precious metals and other commodities. I always expected a correction, but this is deeper than I had expected by far. The big question is, "How long will it last?"

I suspect that we will see the precious metals in a trading range for the time being. Possibly the range will run between about 900 and 930. Hopefully, we will see more on the high than the low side of that range, but only time will tell.

I believe it prudent to put the 10-20% trailing stops on the mining stocks. However, I did not put any stops on the bullion ETFs.

We have a long way to go to for the financial companies to reveal the extent of the sub-prime and solvency problem. The recent actions of the Federal Reserve and the rhetoric from the White House are evidence of the fear that exists on this matter.

I would also suggest that you hold some cash on hand in case it is needed when you cannot get to the bank to retrieve some.

Remember that all is in the hands of the Sovereign King Jesus, Who is working ALL things for His glory and the long term good of His people. We can rest in this assurance of the Covenantal God of all. Know Him and have the assurance for your selves and your families. He works through the covenantal head of each household.

Best to each, Doug