My first experience with US Airways was a few years back, they lost my luggage and it took months upon months to get reimbursed. Not to mention flight delays on every single connection. After my first experience I vowed to stay away from the airline but then came December 2009. I wanted to get somewhere warm for the holidays and for some reason the only ticket was with US Airways. Figuring things have changed since they joined Star Alliance, I decided to upgrade to first class on the way to Hawaii (for $250 per person) and avoid any type of baggage problems. Granted the security increase and delays were not their fault on December 26th, but they still managed to lose my luggage once again. There was no first class dinner menu, instead my only option was Mahi Mahi and I’m not the biggest fish fan. Not to mention that a flight from Toronto to Hawaii is 14 hours, US Airways had the nerve to tell me it will cost $7 dollars to use a blanket on the plane after I spent $4000 on two tickets (thats what you get for booking during busy season)!

Alright, so first class was horrible in comparison to my favorites Lufthansa and Air Canada. On my return from Hawaii I had coach seats. As I check in at the airport the first thing they ask for is $50 dollars for my two checked bags. Once I finally take my seat in the plane I find out that in economy class you need to pay for your meal. This airline is starting to sound like Ryanair and Easyjet, but I only paid $50 to fly with them suppose to $4500 with US Airways. After countless delays and finally sitting down in my coach seat in the last row, the stewardess announces that they have run out of food.

Conclusion… I’m a technical kind of guy and US Airways is looking kind of bullish on the stock charts [LCC], but I wouldn’t touch this airline with a 10 foot pole. As for Star Alliance, they better knock this piece of crap airline off their menu. US AIRWAYS SUCKS!

The stocks which I will be looking at most specifically are Citigroup (C) and General Electric (GE). I like Citigroup at $4.25-45 and I love General Electric at $15.00-50. I’ve taken my first positions late on friday afternoon and I anticipate by the end of October the returns will be substantial. We may see-saw till mid October, but once mid October catches a drift, Citigroup should propell to $6 and General Electric should be at $19. There is one factor that sits in the way and might play against my technicals, and that is earnings. Both companies earn by mid month but since forecasts are fairly conservative, it will be difficult to negatively impact these stocks.

Lets wait and see. Enjoy trading everyone!

Barrick Gold Logo

Before I get into the report a little, I want to speak about a very significant development in the gold mining industry. Just last week, the worlds largest gold miner Barrick Gold Corporation (ABX) announced they will be buying all their hedges at cost of almost 6 billion dollars. This is an incredible development in the gold mining industry. Simply put, Barrick Gold is betting 6 billion dollars that gold will move upwards. The hedge contracts that Barrick had in place created great security for the company, allowing them to make money even if the price of gold went lower. Removing these hedges effectively removes the security blanket and allows them to reap rewards only if the price goes upwards. If they are betting 6 billion dollars that gold is going to go up from here, that sure means a lot to me.

As for the report, Barrick thinks gold is going up and so do I. I’ve been 100% right in the past month in terms of the gold patterns and I anticipate I will continue to be right going forward. Right now, my signal is buy buy buy. Buy on all pull backs in the 990′s and high 980′s. I see lots of support at 996 and lots of resistence at 1001. If we can break 1001 by Tuesday, we could see a big jump to 1015-20. Enjoy trading everyone!

1. Yamana Gold – Ticker AUY

2. New Gold – Ticker NGD

3. Gold ETF’s = HGU.TO & GDX & GLD

You can also expect Silver to follow a similar pattern to Gold, so you can also load up on the silver ETF SLV. Good luck trading everyone!

Covestor - 1 Month Track Record

January was a great month once again. Although my Covestor is saying I’m up modestly for the month and only slightly better then the Index, it simply isn’t true (I’m killing the index!). When I joined Covestor, it took my position and holding prices based on the day I joined, not the actual price I purchased my holdings for. Before joining I purchased AUY at full tilt around $4.25 per share, when I joined Covestor, AUY was at $7+ and I sold AUY at around $6.60. So after making a huge profit, Covestor wasn’t showing the true return (150%+). Here is a graph from Covestor with the tracked success.

Anyways, January was GREAT. Every trade I made was a winner except NNDS (I lost 5 cents and that was in Feb’09). Below I have lsited my upcoming thoughts on the market for February and forward.

• 1. DOW should touch 6500-7000. 
• 2. Silver will lead gold, both will be fantastic plays. I’m building positions in GLD, SLV, ABQ, CA:HGU, UGL. I’ve opted to play ETF’s over the direct miners, although I’m very bull on AUY.
• 3. Inflation is the key issue, I believe gold/silver has begun its run upwards already, inflation will occur in Q3, and possibly late Q2.
• 4. TBT is a solid play. I took a nice position in it with another brokerage account. I expect 20+ US treasuries bonds to pay much more then 2.5% interest by end of year. This is almost a given.

Good luck everyone!

• Gold breaks the $1,000 barrier in Q1 2009.
• DOW will not hold at 7500, I’m looking for the break in late Q1 or Q2. 
• Gold miners (equities) will be the top performer for 2009 (AUY, ABX, NEM, ABX, GG).

Good luck trading in 2009, I hope it goes well!