Hutch,we are at 25 day moving average. Doubled my position,
NEM, ABX, GOLD,HM,
Good luck to one and all, GG,
:)
PS: what do you think XAU and gold stocks will do Fri when
NAPM data come up higher than expected?
TA
Message #41502 from Hutch at Sep 29 1999 10:52AM
The Rally is over. It was over on Tuesday, just like usual. Futures expiration.
When the LBMA market closes at noonish NY time, you may well see a run up in the POG. But it will be a time to short, or get out.
ABX CEO: "Demand looks good"
Hutch: "So does supply"
NOTHING is different today then last week. The ECB although setting limits, have set the limits extremely high. But they alone are not the whole world. If we assume that
Demand is around 2600 tonnes {WGC} then that 400 tonnes is effectivley 16%. A small value, when the producers are still increasing supply. And much of that supply
can be sold into futures, WHILE they fulfill previous future contracts or loans. The case for higher gold is still not made, but sucker rallies of expiration of futures {where
Future options partake} can make for a volatile market. In other words, you are battling the hedge funds, and unless you know when to sell, you are playing into their
hands. The long standing edict of buy and hold is crap that Funds traders love to propagate. If GOLD is a currency, it's over valued; if gold is a commodity, it's over valued.
So those that hold beyond this day are either hopeing for world currency devaluations, or hoping for supply removal. The Future squeeze is over, the producers waited by
NOT selling into the spot. Heck it was in their best interests.
Hutch
PS: Regretting I was to sick to short yesterday.... But I'm better now, and will IF their is a rally after noon EST. |
