Gold
Gold
ETF Trading
Monday
February 02, 2009
General Commentary:
We vacated the Gold position this morning. Yesterday was a nice advance, but it could not hold this morning. Gold had a gap down at the opening and there it struggled. We sold at 90.04; taking profits in hand.
Pricing was above the 50dma.
The Bollinger Bands were showing a modest volatility.
The P-SAR was running bullish.
Volume was low.
The S-STO was registering over-bought.
The MACD was somewhat struggling.
Happy Trading.....
I been reading a lot about gold ETFs and how they are taking off. So I've put a number of them on my watch list and am getting ready to trade them in a fantasy account. Here is an article I found that lists the major ones and how they are doing lately.
What’s The Outlook For Gold And Its ETFs?
"Gold investors have found the Midas touch with gold and related exchange traded funds (ETFs) showing a small surge....."
http://www.dailymarkets.com/contribu...-and-its-etfs/
I hope you enjoy it!
Lady
Hi Lady,
Good to see ya, GLD and UGL.
own some gld, cef, & ewc......want to buy more ASAP
feel gold will visit 1500+ sometime soon.
the bunch of "change" oriented specialist now in charge will try 2 print outta this........not to rag on about our white house guest much...just NOT A BIT OF CONFIDENCE AT ALL IN this socialistic obama crowd
know he is my prez now and i respect him for what's he has pulled off. the point is he is a junior senator with very left leaning crooks around him.
GOD HELP US
love faber.....spot on fellow:
http://www.youtube.com/watch?v=58f3UpXu904
http://www.321gold.com/
VR Trader, 2/2/09, by Mark Leibovit, emphasis added.
"GOLD - ACTION alert -
The precious metals had a great day Friday, hitting rally highs, despite the rising dollar. Gold gained 18.80 to 927.10 and hit a rally high of 929..60 in the afternoon, putting us right at resistance of 930. Silver rose 0.32 to 12.67 and hit a high of 12.70. Platinum was up 14 to 987. Copper futures settled up 0.0110 to 1.4685.
Commodities as a whole (the CRB Index) has been creeping higher. The only two groups that have not meaningful participated to date is energy and meats in the commodity complex. It appears, however, commodities as a whole are breaking out of bases and could really take-off here.
Precious metals are benefiting from a huge flight to safety. Back in the autumn stock market crash, Treasuries were the flight to safety instrument. Since then, the US government has "invested" $700 billion in financial firms through the TARP, expanded money supply, and is passing a $819 billion stimulus plan. With all the new supply coming online to fund the growing budget deficit, gold has replaced US Treasuries as the safe investment of choice.
Meanwhile, next upside resistance for gold is 930, 960 and 985 and the record high at 1037. Beyond that, I am looking for 1200. There is a seasonal tendency for a rally into February or early spring, usually followed by a correction. Traders have to be aware of this risk, whether we post new record highs or not. ....
I continue to recommend accumulating the physical metal whenever you can get your hands on it.. Reason? There is not a single central bank or financial institution in the world that can create more gold. Its supply is extremely limited. All the gold ever mined in the history of the world would fit into two Olympic-size swimming pools. In addition, every central bank on the planet is printing fiat money like crazy. Plus, if you think the financial crisis is bad thus far, tighten your seatbelts because it's about to get a heck of a lot worse."
http://www.traders-talk.com/mb2/inde...owtopic=101037
Lady
Here's an article to make you think. Look at what gold bullion did as we came out of the 2003 bear market bottom.
Stock Market is Bottoming, Equities VS Gold Bullion
by Chris Vermeulen, 2/3/2009
"Stock market looks like it has bottomed forming a similar pattern as it did in 2003. What is the better investment during an opportunity like this if this is the bottom: Stocks, Gold Bullion or Mining Stocks?
The charts below will really open your eyes as to how similar today's W looking bottom is to the W shaped bottom in 2003. Of course 6 years later the markets trade and move faster than ever before because of technology allowing traders to track and trade stocks from anywhere with a click of a button. So this years bottom formed much quicker.
Traders, individual investors, hedge funds, financial institutions and even some of the guys on CNBC are starting to buy stocks and etfs (exchange traded funds) at these price levels. I remember the market bottom in 2003 and it was much similar to the type of energy buzzing these past few weeks. Of course there is a lot more drama with Obama as president, Printing US Dollars, Scandals and bad news hitting the market day after day. But what makes all this normal is that it cannot get much worse in the news and everyone is expecting it for months to follow. Traders and investors don't even flinch when bad news comes out anymore and to top it off the SP500 has formed the same pattern it did during the last bear market bottom in 2003. Check out these charts below.
Performance Chart of SP500, Russell 2000, Gold Bullion and Gold Miner Stocks
This chart shows how well different investments performed during the last bull market. The SP500 was the steady gainer posting a 95% gain; Gold Miners Stocks posted a whopping 210% gain but had wild swings which were big enough to shake out even the best traders. Gold bullion and the Russell 2000 performed very well providing a 130% profit with manageable price swings....."
http://safehaven.com/article-12513.htm
Lady
The one problem I have with the bottom theory is that this bear market is only about 15 months old. There's no comparison of the 2001 recession to the current economic environment, yet the bear market lasted three years back then. Of course valuations were a lot higher in 2000, so there's that.As you can see from the charts above, it's pretty amazing how similar things look between the two bear markets in the SP500.
-- Tom | My Trades