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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (10502)	4/23/1998 4:44:00 PM
From: Zardoz	Respond to of 116759

"I'd say it doesn't matter if Gold clears $320. TA of the XAU is what counts. EW can be very helpful, especially in analysis of gold stocks. Jim" Sure it matters. Overvaluation is just as bad if it's in the Internet stocks or Gold stocks. I'm waiting for the right day to buy Puts on my favorite stock. Just cause I see the gold price not clearing $320. This does not make Gold Stocks a bad value. The only way to play commodity stocks which work off of the commodity price is to trade on the dips to the peaks, and back. Commodity stocks work of a known price structure. And since companies have proven reserves, and the commodity price is always known, you can attribute value to each company. But Valuation of the commodity and it's trend is important. If you trade the XAU, than an in depth technical analysis of each of the XAU stocks is required. I'm only suggesting that the direction for the Gold price is down. And if the US fed raises rates, it will move down. EW is a not a superlative technical formula, since larger cycles of wave can be used as excusses to non conformal data. That's why "Elliott discerned nine degrees of waves". And unlike High tech stocks where technology can change the valuation, commodity stocks follow the valuation. And quantafiable formula can be created for them. This is why, when stock markets crashes, as in 1987, Gold need not increase in price {as many thought it would} and gold stocks sold off. What happened, was a rise in the US dollar that offset the valuations. For a good explanation of EW: elliottwave.com PS: not all technical formula are created equal. As an engineering student, I created many formula for electrodynamic systems that solved the problems.... doesn't mean they were right. And I do understand sphereical harmonics, and steady state theory.