Yes, tooearly, I was tooearly!
Yesterday's performance for EGO was not as good as many of the others. It closed higher near its low with a lower high and a higher low. It has resistance at 2.52 and then at 2.85. But I have a feeling that EGO will soon begin to make up lost ground. IMO, I would wait until it can make it through 2.52 on some strong volume.
After backing up the truck at the bottom in April 03 as per my posts, I was fully invested until mid November of last year. In September, I followed Steve Saville's Spring 03 commentary suggesting that silver stocks would play catch up to gold with a lag time of 6-9 months. At that time in September, I was fortunate (lucky) enough to have sold a portion of my gold shares including ELD to buy silver stocks such as WTZ, SSRI, MFL, etc. It turned out very well for me.
Per my recent posts, I backed up the truck once again. Although I like ELD very much, I have a hunch that certain other stocks will outperform, stocks such as NG, CLG, MNG, WTZ, etc. to name a few. Also I have a substantial position in many of Claude's picks such as AQI, CKG, ANO, NL, etc.
But I will quickly exit my trading positions if the volumes on the HUI and XAU indicies don't move up with heavy volume as we approach key areas. Also, I am of the opinion that gold trades inversely to the dollar and will watch it like a hawk. Currently, I'm expecting it to get down to 87 area but we'll see. In case I'm completely wrong, I have stops in place for my stocks at those key levels. Hopefully this Friday's employment report will be dollar negative. |
