Golden Age?
Gold? Yep, gold is back in favor, as
evidenced by the gold stocks, as well as the shiny metal. While the gold stocks
are not exactly the best stocks for HVT,
they do offer nice setups intraday off of an hourly chart. From a daily and
monthly perspective, it is hard to argue that gold is not back in favor. For
those of you who have been long some of the underlying un-hedged gold stocks
like Gold Fields
(
GOLD |
Quote |
Chart |
News |
PowerRating) and Harmony
Gold
(
HGMCY |
Quote |
Chart |
News |
PowerRating), you are feeling pretty good. On Friday in TradersWire,
I pointed out the setups on the hourly charts on both of these stocks. If you
took the trades and closed out by the end of the day, you had a very nice gain,
without any whipsaw price action.
I have been bullish on gold all year, so I naturally keep a close eye on
these stocks. They go through periods, like anything else, where they trade
really well for a few days, then go quiet. Friday’s action may have been a start
of a new round of interest. While I will not get into the geopolitical arguments
for gold, it does appear that there is truly a demand for the metal currently,
as opposed to some whimsical speculation. The fact that gold is strong without a
simultaneous decline in the dollar is all the more reason to think that it may
be different this time. Take a look at the monthly charts of
"un-hedged" gold stocks, and you will see a remarkable pattern.
On the HVT front, trading was again very quiet. There were a few
opportunities, but by and large, a yawner. The downgrade of Lucent’s
(
LU |
Quote |
Chart |
News |
PowerRating) debt rating by Moody’s allowed us to
get short a bunch of the stock for a nice grind lower. Again, news-driven stocks
are where we are finding the best trades.
Meanwhile the VIX continues lower. I
suspect that this simple fact alone means that some volatility certainly lies in
our future.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 1170.56 | 1526 |
| 1163-64 (confluence) | 1511 |
| 1156 | 1501 (key resistance) |
| 1147 | 1493 |
| 1136 (key support) | 1486 (key resistance) |
| 1126 | 1462 (key support) |
| 1117 | 1443 |
| 1437 |
Thought For The Week:
“People are always searching for the ‘new’ thing. They
are not willing to do what is necessary.â€
—John Wooden, UCLA Basketball Coach
As always, feel free to send me your comments and
questions. See you in TradersWire.