Michael,
I still have a buy signal on gold as of last night (I have to update my work shortly), and a hold on AEM. You are not supposed to sell until I give at least an "out" signal! <g>
This "wishy-washiness" on the part of gold and the gold stocks sure is frustrating, but at these levels, I will hold, or at the very worst, sell calls against my stock positions should things turn sour here...
In any case, I believe that we are getting closer to the day when the gold bears will be forced to throw in the "towel", after perhaps one more moderate to serious down-move in the XAU index. Either way, I'm holding on to what I have, and will just buy more at the next significant decline to lower my average cost even more...
The stochastic level does not bother me too much, and of course, it all depends on which parameters you are using with them also. I wish you the best of luck in finding a better buying opportunity.
Yes, I remember making good money with XAU puts right after the 1987 stock market crash! (they want up like a very hot internet stock) However, we must remember that history rhymes more often than repeats, so it will be interesting to see how the gold stocks act in the next true bear market for stocks... Merry Christmas and a Happy New Year! Yogi Claus |
