re: ["what about Gold? Where do you see it going ST ?"]
Volume spoke, and spoke loudly yesterday.
Did you see what the HUI Big Dogs did?
They were up yesterday and on BIG volume:
Share volume:
ABX - 22.9 m vs. 14.9 m average volume.
NEM - 12 m vs. 9 m avg.
GG - 18.9 m vs. 14.7 m avg.
AUY - 24.8 m vs. 18.9 m avg.
KGC - 22.1 m vs. 10.6 m avg.
Institutional favorites were strong yesterday, and smaller cap
individual investor fav's got hit hard, especially in the
afternoon as the DOW tanked..
The market just told you today what it likes - listen to it.
Gold finished up yesterday, even with the Dollar positive,
even with oil down, and even on -332 point day in the DOW.
That also speaks volumes.
The underlying fundamentals for gold and gold stocks are
strong and I've already talked about the now $8 trillion
reasons why...
You only need to take a look at the share volume stats above,
to see that the market is accumulating gold & gold shares,
even into the abyss.
And that is a positive change from October - December, when you
would NOT have seen the major gold stocks up, on a -300+ point
day in the DOW, with the bank stocks cratering like yesterday.
But, volatility and manipulation/intervention will not
go away. They will not make this easy.
In a nutshell:
-- You are going to have to be a trader to survive and prosper.
Keep selling/taking profits, on these gap up opens... when
the institutions move in to build positions, and when the mo-mo
players follow. Reload "only" on pullbacks. And take advantage
of the rich premiums still afforded by this volatility, to use
put sales as a primary initial re-entry/buying & profit strategy.
-- The large caps have offered safety, liquidity, and even
out performance of late. I wouldn't ignore the tradeability
of the smaller caps, but I would weight my "core holds" to
the large caps and physical in hand.
-- And by physical in hand, I mean that literally. In your
hands, under your roof, or buried on your north forty. No bullion
banks, no safety deposit boxes --> for your eyes only,
and in your hands only. Over time, you will understand
why. Beat the crowd from paper into physical -- now.
-- I would also institute a strategy of taking trading profits
and buying more & more physical, with an end goal of acquiring
an ever larger, and larger holding of physical vs. paper pm's.
The biggest change I've made over the last couple of months
is a shift to more physical in hand, and using paper trading
as the vehicle to acquire more, and more physical.
Bottomline: How do you beat the banksters at their
own game in volatile whipsaw markets?
Trade paper gold to acquire more physical gold.
ie: Use the GLD, SLV, GDX ETF's, or DZZ, DGZ, and puts, or
shorts on the mining stocks & ETF's to hedge your physical
pm's. And keep recycling your paper trading profits from
mining stocks into more and more physical.
More later... as well as a couple of thoughts on Roubini
and some media pundits and poseurs...
SOTB |
