Got the truck warmed up?
You may now cover and cash in those puts. And
you can start selling puts for income
to fund your call option buys, and to
discount your re-entry buys.
Your first mission was to have banked
the run from the HUI 280 washout into
400, 420 and 450.
Your second mission was to have bought puts
for insurance & income, and to lock in your
profits above HUI 420.
Your third mission is to now fund your re-entry
buys by cashing in and banking those puts,
as we form a bottom.
Is it "the" bottom?
Maybe, maybe not.
HUI 370-380 was the longterm resistance level
all during "The Chart Part One's" rolling
trading range. Technically and fundamentally,
it should bring in strong buying support.
Also, it presents the first "discrepancy between
price and risk" that we've seen for a while.
A correction in the broad market was overdue.
We had another Yen-carry trade shakeout and that
will always hit gold. The dollar was due for
a bounce...and gold & gold stocks have pulled back.
Fundamentally - nothing has changed for gold. And we
always like it when we get a "little help from our
friends"... as it's not just the U.S. Fed that's
reflating... now it's the major global
central banks as well.
Don't get crazy, don't get on margin... be patient...
stay with the best of breed stocks. Use options to
maximize your upside, to limit your downside, and to
minimize your initial exposure.
This run is in the bank. Now we re-load for the next
phase of this run - onward & upward through HUI 500+.
Your patience has paid off.
Now back 'er up...drop the gate...and start
buying your enemy's mistakes.
Mo later, and don't forget to send
Bernanke, Paulsen & Co. a Christmas
card thanking them for their efforts.
S.O.T.B.
PS: I'll get some charts up later tonight,
and we'll look at some specific stocks as
well.
And thanks everyone for your support of
Ron Paul and "Tea Party 2007." |
