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plan
Registered: Jan 2008
Posts: 173 |
11-09-09 05:41 PM
Quote from moonlightxpress:
covered 2000 shares at 49.75..gonna do this till it doesnt work..
good for you, as long as it works.....
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love2puck14
Registered: Aug 2009
Posts: 20 |
11-09-09 06:40 PM
Quote from plan:
Not sure how much correlation you can make between the miners and the price of gold, similar to crude and oil stocks (say USO versus XLE or CL/XLE)
Plan,
Thank you for making my point. I've noticed that people on here have no clue about anything.
THIS IS AN ETF that holds 31 different gold mining STOCKS!
Not a levered etf (ugl, uco, dxo, ung... Ect.)
And yes the gold miners have lagged the price of gold. Not sure why that is the case. Some of the larger cap names in the index have flown though. See IAG, GG, GOLD, ABX, NEM are all at 1 year highes. I believe that the smaller cap names (I.E. The juniors which will be in the new etf should they launch it) are lagging. No clue as to why.
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Anaconda
Registered: Dec 2008
Posts: 1512 |
11-09-09 06:41 PM
Quote from moonlightxpress:
gold is reaching highs while gdx is not..what gives?
Miners hedge their production. Just because gold is at $1100 does not mean that ABC mining corp is selling their mined gold for $1100. They could be selling it for $800.
With the cash & credit crunch that they experienced, it is likely that they overhedged in order to keep credit lines and hence gave up a lot of gains.
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plan
Registered: Jan 2008
Posts: 173 |
11-09-09 06:45 PM
Quote from love2puck14:
Plan,
Thank you for making my point. I've noticed that people on here have no clue about anything.
THIS IS AN ETF that holds 31 different gold mining STOCKS!
Not a levered etf (ugl, uco, dxo, ung... Ect.)
And yes the gold miners have lagged the price of gold. Not sure why that is the case. Some of the larger cap names in the index have flown though. See IAG, GG, GOLD, ABX, NEM are all at 1 year highes. I believe that the smaller cap names (I.E. The juniors which will be in the new etf should they launch it) are lagging. No clue as to why.
Yes it def is complex issue. I spent some time trying to figure out whether there was a good strat trading XLE USO in pairs but could never find one and I think GDX GLD is v similar. Just too many factors that are unrelated....
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ccwells
Registered: Nov 2009
Posts: 15 |
11-10-09 12:44 AM
GDX gapped up at the open and made a new high intraday today, however, it closed near the lows of the session. GLD had the same price action. GLD has been riding inside a rising parallel trend line since the low in July. As you can see in the chart, the price is riding up against the top trend line. That is a good reason to expect a price decline in the next couple of days. The question is how much of a decline.
If you use Elliott Wave Analysis as part of your trading tools, you may also notice a complete five waves up from the 10/30/09 low in GDX. GLD can be a complete if the final five waves from the 11/4/09 low is an ending diagonal. GLD could potentially make a push higher tomorrow morning, which would most likely complete the wave pattern.
Wave counts of 3, 7, and 11 are corrective in nature according to Elliott Wave Analysis. As you can see in the chart, GLD has traced out seven waves from the 7/8/09 low. This is another reason for an argument for a potential top or nearly so in GLD. The critical level to indicate a top is complete is the break below the 10/28/09 low.
 Attachment: gld.png
This has been downloaded 3 time(s).
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