Avoiding the Cheerleaders for Gold

There’s nothing that gets us more riled in this business than the incessant drone of market cheerleaders stuck on their favorite stock or asset class, even after it becomes clear that the investment has turned into a roaring loser and is heading to THE BOTTOM OF THE OCEAN! Yes, we get emotional, and with good cause. First, we can’t stand the sight or sound of anyone so lacking in self-respect, yammering on about whatever it is they ‘love’ and ‘adore’ and ‘just you wait’ and ‘we’ll show them’ and yadayadayada… It’s painful. The other, obvious, reason is that it can become contagious. There’s something altogether catchy about stupidity, and if you’re paying attention, you’ll see…

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Gold Wins, and Gold Loses

The most dramatic moves in the market last week belonged to the precious metals and their associates, which jumped like a shocked rodeo steer as the dollar lost ground. The question now facing gold (and dollar) addicts is whether those moves were for real. Has the dollar’s relentless drive skyward now stalled? And will that trigger a sustained bull move for the precious metals, finally, after a four-year run through the investment world’s alley of septic horror? Nothing’s certain, but our take is like this… In the first place, there’s nothing that says the dollar and gold have to maintain a perfect inverse relationship at all times and through all markets. They won’t. There will…

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Nothing in the Hole – Gold Miners Surface Empty handed! (GDX, GLD, SLV)

We’re witnessing some very contradictory developments on the precious metals front, which we believe it important to highlight today. But before we do, a word from a man for whom we have a great deal of regard. Not our loyal reader, Jimmie Rodgers, but rather many-time billionaire and former Soros attaché, sinophile and renowned gold bug – a man whose calls on the commodities market have been as good as any – Jim Rogers believes the time to begin buying gold again has not yet arrived. In a recent interview, he claims he’s still waiting on a buying opportunity and that the metal has a mind of its own: “sometimes it moves with the dollar,…

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What Silver (SLV) And Oil’s Rebound Means For Global Trade

In today’s letter we offer some updated thoughts on the commodities. We’ll start with the precious metals, whose charts are starting to look surprisingly strong. For a Change… The best of them all, without question, is silver, which some four years back led gold to its bull market high, and could very well turn higher now after putting in a bottom. Nothing’s for certain, of course, and we have lingering doubts about whether the bottom is actually in, but we have to acknowledge what we see. And that is – silver is starting to look good. Take a peek – This is the daily chart of the iShares Silver Trust (NYSE:SLV), a good proxy for…

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Investment Philosophy Explained (UUP, GLD)

Ethical Investing

Dollar (UUP) Headaches? Gold (GLD) Fever?   There are two approaches to dealing with the flu. Some folks load up on the Tylenol and attempt to weather the worst of the symptoms by dulling their effect on the body. Nausea? Stuffed up ears, nose and throat? Can’t feel ‘em. Let’s get to work. The other approach is to leave the malady run its course without taking medication. For those who deal in this manner, the thinking is equally simple. As they claim – at least they know if they’re sick or not, and if it’s worth their while to jump back into the fray. Finance Mirrors Life So it is with life in general, and…

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The Impending Gold (GDX) Consolidation – How do we play it?

There are a few things you can count on as GDX plumbs new depths, the bugs bug-out, and, in an extraordinarily marginal business environment, the corporate gold movers look for new ways to maintain profitability. One of those things to look for is additional forward selling. There’s little wisdom from a corporate point of view in holding on to your bullion store while the metals are sinking. Look for the majors to continue adding to their hedge books. What’s that mean for GDX? The result will be a whole lot of downward pressure on silver and gold going forward, in the same way that it has for the last three years. While the commercials essentially…

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Gold Tech Wreck in the Making (GLD)

We’ve been very excited about gold (GLD) in the last couple of weeks – excited about her impending fall, excited about warning you of the same, and excited that we might make a little scratch off the move. And what do ya know? Last Friday the bottom began to fall out. We’re going to address gold’s latest moves in just a moment, and offer you a trade on the old lass. But first, we want to continue down the road of higher options education with another brief lesson on technical tools, their use, function, and effectiveness. Here’s The Recap In last weeks article, An Intro to Options, MACD and RSI, we introduced the role of the MACD…

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Clean Shaven Legs Review

Well, we did it. We arrived at the end of the year with our limbs intact, our pocketbooks bursting with newly won cash, and our minds… well… sort of. Anyway, we thank the Great One (not Gretzky) for his help, despite the fact that our mid-year predictions for most markets were weaker than usual. And we take a moment now to review those calls and, of course, to reward those of our readers with the keenest prognosticating acumen with the used Q-Tips that we promised them. Congrats to all who participated!   Before we announce this year’s victor, let’s look back at our own efforts. We’ll rhyme ‘em off, and you write in to comment…

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The Ghost of GLD Ghosts Past

GLD

A happy New Year to all. Let’s get straight to business. We’ll start with the golden delicious – what appears to be a bounce in the precious metals that has many people wondering if we’ve seen the bear’s bottom. On the bullish side, the chart shows the SPDR Gold Trust (NYSE:GLD), a decent proxy for the metal, moving higher over the last few sessions, and her Relative Strength Index (black circle, at bottom) ascending above its midway waterline. But beyond that, there’s little on offer that’s positive. We still have all the moving averages unfurled and trending lower, including the no-nonsense 137 DMA, which has proven itself an indomitable line of resistance for the last…

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