Stock Comment Newmont ($50.50)

On September 23rd in a comment on Newmont, I said that I was watching to see if we could break out through a downtrending resistance line that extended back to the year 1987. Not long ago, we did break out, and then went on to poke above important round-number resistance at $50 as well.

Looking back, I can see where we spiked sharply above $50 in 1987, and we built a second top just above $50 in 1996, nine years later. Another nine years, and here we are at the end of 2005, again above the $50 mark.

At this juncture, my models indicate powerful upside pressure on the long term, a modestly overbought intermediate term condition, and continuing short term strength in spite of a considerable upside move already seen in recent weeks.

To my way of thinking, it's a healthy picture.