KGI, Kirkland Lake Gold, update.

Here are the two charts, then  (May 17) and now;

kgi may 17, 2011  kgi jul 2011 2

Despite last week’s comments we would sell here. The simple reason is that the triagle can be interpreted in two ways (green and red). The green and original one was more compact and allowed for a higher thrust. Both the green and red interpretations are close to being complete. We like “the-bird-in-the-hand” approach so we are happy to take the profit $17.50-$13.90 = $3.60 or about 26%.

Fundamentally we do not like the fact that Mr. Bernanke has, at last, acknowledged that his QEs could actually have had an impact on commodity prices. With that, he has effectively painted himself in a corner.

In any case, this stock should drop back to the base of the triangle so there is no good reason to stick around.