Monster Gold Profits Due Next Month! Honest!

Real-time Monetary Inflation (last 12 months): 2.3%

Well, we've arrived at the ides of March, a day particularly unlucky for Julius Caesar, but I'm banking on this day as the start of the 30-day countdown to monster gains in the gold mining sector.

Why? Because Colin McCabe, the supposed editor of the Elite Stock Report, told me-and, no doubt, thousands of other folk-that a fortune could be made by Tax Day if shares of Guinness Exploration, Inc. (OTCBB: GNXP) were bought. Guinness is a Canadian development outfit that's buying interests in Yukon and Alaskan gold fields.

In fact, when I received his missive on Feb. 16, McCabe breathlessly exhorted of "Monster gains inside the next 60 days" for buyers of GNXP.

You can read the background for McCabe's claim in "A Golden Future In Your Mailbox?".

The prospect for an explosive run-up in the stock, however, seems to be fading. Note the price action (black line) in the GNXP chart below. The yellow circle's centered on Feb. 16, the date McCabe's message came to me. Then, GNXP traded at $1.28. Now it's changing hands at a buck.

More important, though, is the slowdown in GNXP's money flow. The Money Flow Index (MFI) is a volume-weighted momentum indicator that measures the strength of capital movements in and out of a security. MFI is measured on a 0-100 scale that identifies the strength or weakness of a trend. MFI is plotted on the red line in the chart below.

 

Guinness Exploration (GNXP) Money Flow

 

Notice something? Even while the price was rising in advance of my receipt of McCabe's newsletter, money was flowing out of, not into, the stock. Folks like me, encouraged to buy GNXP, would be grease on the exit skids for previous buyers who piled into the stock a month before. The MFI hit 99.9 on Jan. 19, but by the time I was told to buy, the index had slumped to 86.8. Now it's hovering just over 40.

Pump and dump? Well, let's check the money flows of another gold-based security, the SPDR Gold Shares Trust (NYSE: GLD).

 

SPDR Gold Shares Trust (GLD) Money Flow

 

On Feb. 16, GLD's price had been rallying for two weeks, pretty much like GNXP. But look at the money flow trend. Capital was pouring into the trust and continued to do so until the first week of March.

So what are the chances latter-stage GNXP investors can reap those monster gains in the next 30 days? Well, not very good unless a heavy-and I mean heavy-slug of fresh buyers can be scared up with another mass mailing of the Elite Stock Report.