Any technicians out there have an opinion on the price action the last few days? It looks like the stochastics on many gold stock charts have not confirmed the recent highs. Plus there are downside gaps to fill on many charts. I may not be short yet, but I would certainly not be a buyer here (IMO).
Well if you are looking solely at gold stock charts, then yes, your points are valid. But I must take into consideration the values of the dollar, bonds, the US stock market, and world markets. These factors give me the impression that this is a special situation. Some things like the US dollar are only now getting a little testy, but other issues like Asia, and now even the US markets are continuing in a trend. This trend will affect the POG, and if that rises you will see companies like HM, ABX, and NEM among others (I own the last two) jump from negative cashflow to positive earnings rather quickly.
The most difficult thing for me to have learned about investing in general (especially in 24 hour hard commodities) is you HAVE to see the forest before you can ever judge a single tree.
I moved my treehouse to metals this summer, and it's been a nice stay. The moment I see a better tree I will move again. But right now, all things considered, I am staying here. (I think we have only just begun (STOP SINGING!)) As a matter of fact, I might just build a rec room on this treehouse...
Sorry for all the silly imagery,
cAPS |
