Resource Stock Update - V14 #11.1 - Markets - Nov., 20, 2008

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Just a quick note, today the markets are falling through the October lows, both the Toronto Index
and the U.S. indexes.

The VIX has been rising for the past week as well, it is another round of panic selling. The Ted
Spread is not rising though. The US$ and Yen are up, so looks like some continued hedge fund
de-leveraging

This is no surprise and I talked about a November retest of the October low in a couple of previous
updates and a good possibility of a final washout to new lows.

I do not expect the market to go much lower, this may be it or possible worst case is a further 5%
to 10% from the October low.

And this selloff is looking a little different, gold and the senior gold stocks are not selling down
with the market as in previous sell offs. In fact gold and gold stocks are up today. This sell off,
looks a little more focused on general equities only. As I mentioned in a previous update, it
appears hedge funds have already liquidated most of their gold and commodity related investments.

Commodities have not fallen through the October lows yet and those lows may hold. If they don't, I
doubt the CRB index will go much lower, same thing maybe another 5% to 10% at most.

Gold is still on an uptrend since the low at $700 last week. It would be good to see gold move to around $770, which would be a higher high.

I am making a few updates on the website and the last few updates should be posted by tomorrow
sometime

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