The BarkerLetter

December 13, 2007

Greetings investors!

We can expect to see some seasonal selling of our favourite mining stocks going into the Christmas holiday season.  Investors typically need to divert a little investment capital into buying presents and winter vacations this time of year, so they`ll be taking some of that off the table in the days to come.

The question in my mind is whether Christmas week will be a good time to average down. Stock prices often plunge in late December , and as quickly snap back up. But not always.  In fact I`ve seen some real smokin` hot market rallies occur over the last few days of the year.

In either case, it`s a real good idea to watch for dips and rallies just before and after Christmas Day. There could be an opportunity to make some quick capital gains.

Meanwhile, I`m watching Canada`s bellwether (for metals) Toronto Stock Exchange (TSX) index for clues, and especially the composite index for the venture board, where many of my junior miners are located. After last August`s sell off I rather hoped to see the CDNX test its high for the year, and though it made some impressive gains through October we didn`t hit record territory for the year. The index is treading water at present, having given back more than half of those gains in the past five weeks.

However, my favourite indicator - the MACD - remains mildly bullish so I`d say we`re in for a rally of sorts early in the New Year. The juniors are still under accumulation as well.

The one ominous thing is the relative quiet from the majors. Last year at this time practically all of the world`s biggest gold mining companies were publicly predicting a banner year for gold in 2007, which has certainly been the case. But I haven`t heard a peep so far about 2008.

We`ll find out soon enough though.

Careful out there.

Kb