Looks like a rotation into gold (finally). Gold has formed a high base in the $630 to $690 range, and appears to be trying to break out. If the Fed cuts rates and the dollar falls, this could goose gold up to $800 plus. Some of the miners are acting well too. AEM has broken out. NEM, one of the 'blue chips', has broken a downward trendline: MNG's chart is tightly coiled and looks ready to explode: Perhaps a good entry into the much-hyped Crystallex? This is all highly speculative. Please do your own due diligence.
If gold acts well then sure I could see AUY challenging its old high of $15. That's about 27% profit from here. I think the chart looks a little awkward here, but I do like the three recent heavy bouts of selling. That could clear the decks for a leg up.
AUY is stuck in the mud till they ditch the stupid hostile takeover. Long GSS. Watch it fly whether gold launches or not, in next 2 weeks.
Would say that gold is climbing in direct proportion with volatility and uncertainty in the currency markets coming into tues fomc. Crux point supercharged with almost platitudinous acceptance of at least some reasonable possibility of this:
Totally. It's not meant as an attempt at prediction. Just a picture of what would happen if this was all part of a hollywood horror film aimed at the economist demographic
Told ya. Allow me to brag about my chart reading skills :-D See my original post at the top of this thread from Sept 2007. I said buy GLD, NEM, MNG and KRY. GLD $70 -> $98, +40% gain NEM $44 -> $55, +25% gain MNG $4.8 -> $7, +45% gain KRY $3 -> $2.1, -30% loss Three out of four's not bad; even with the loss you're looking at a net +20% gain in 6 months. Yeah, I know, big deal, some day traders make that in a day. This is just a humble example of what can be done with position trading by reading daily charts to look for signs of accumulation in a base.