Dear Santa,

    Thank you for momentum followers, day traders and all the other people who do what they are told. Since these "investors" have fled gold and uranium, the stocks in these sectors are once again beginning to look attractive. A couple more days like today and we will be approaching bargain territory.

Uranium Stocks

    With the exception of Uranium One (UUU.TO) which was down less than a percent, this sector got clobbered today. Cameco (CCO.TO) got hit for 3.6%. Paladin (PDN.TO) lost almost 8%, UEX (UEX.TO) was down over 10% and Laramide (LAM.TO) got smacked for almost 14%.

    Uranium itself is still sitting around $90 a pound. The supply/demand situation still looks good. Nothing has changed fundamentally.

Gold Stocks

    The Canadian Gold Index (XGD.TO) lost 4.44%. All the big boys got hit. Goldcorp lost 4%. Barrick was down 2.3%, Kinross (K.TO) got hammered for a 7.5% loss. There wasn't any place to hide there.

    Gold itself is still hovering around $800. South African supply is down. Chinese demand is up. Of course, gold could get hit in the near term, but stagflation did wonders for gold last time.

    The Maestro was ruminating about stagflation yesterday. That's the popular excuse for everybody piling out of stocks today. Personally, I think everybody came up with the mantra, "sell Beta!" in this morning's strategy meetings.


    A few gold stocks and a boatload of uranium stocks sure would look great under the Christmas tree! Please, Santa. I've been good. I swear.

SunTzu