We have been talking Gold up for over 18 months now. As the dollar goes weaker the gold price is correlated to it and so Gold prices must go higher. In addition to the dollar weakness, asset fund flow movement is easing out of cash and into precious metals like Gold and platinum resulting in the massive surge of prices for the commodities.
This does not mean that traders and investors should invest in the stocks relative to these precious metals. Traditionally, gold stocks dont follow the gold price. Platinum stocks tend to have a better correlation to their underlying metal's spot price. But it too should not be banked at present.
The best is to buy gold and Platinum spot price positions. That means you buy the actual price in dollar terms of an ounce of gold or platinum itself. It has nothing to do with a mine or a stock. You are speculating on the demand and supply of the commodity and either selling the precious metal or buying it accordingly.
With one of the major South African gold miners cancelling their hedge recently reasoning that the gold price is not expected to go below $1300 again it gives you a warm fuzzy feeling about the way gold spot price is going to go!
Our long time take profit level for Gold spot price was $1350 using a weekly chart for a medium term hold position... As it happens we hit this level in the gold price in October.
The dollar is at support now of the 161% extension against the EURO so caution is to be taken now in any long position. Move your stop loss into profit and keep an eye on it.
Trade well; not often.
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Stock Market Investment Workshops, ebooks & financial freedom @ http://www.newsweek.co.za Visit Forex Fund Management for consistent returns by a Forex Pro looking after your money while it works for you.
Showing posts with label Gold price. Show all posts
Showing posts with label Gold price. Show all posts
Thursday, October 7, 2010
Thursday, September 30, 2010
We go long ALSI top 40
Our trading mentorship has almost run a month now and we had an excellent bullish rally trade opportunity today from 26000 to 26350. A very nice way to end the month of September.
We have also been holding Mr Price, Foschini and Shoprite since the beginning of the month. We have moved out stop loss in to aggressive profit levels to secure profits as the stock markets look to be leading into a wave 4 cycle which is bearish.
We have also been holding gold since $1265 long and now look to ease out of the gold price long position in the short term as it looks top heavy as well. We look to take profits around the $1319 level but certainly if the chart breaks down through $1306 which is a Fibonacci level.
Our stock market outlook is that the market is overbought and top heavy. This week displays a final push to Fibonnacci extension targets as unit trust funds etc all trade higher in the market to increase their quarterly results before any sell off can be seriously considered in the short term.
We are firmly bullish in the long term. There is at least 5 years more of upward movement in the global markets but not all in a straight line. As long as the 89MA remains support the recession is over and a double dip is unlikely.
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Stock Market Investment Workshops, ebooks & financial freedom @ http://www.wealthskills.co.za/
We have also been holding Mr Price, Foschini and Shoprite since the beginning of the month. We have moved out stop loss in to aggressive profit levels to secure profits as the stock markets look to be leading into a wave 4 cycle which is bearish.
We have also been holding gold since $1265 long and now look to ease out of the gold price long position in the short term as it looks top heavy as well. We look to take profits around the $1319 level but certainly if the chart breaks down through $1306 which is a Fibonacci level.
Our stock market outlook is that the market is overbought and top heavy. This week displays a final push to Fibonnacci extension targets as unit trust funds etc all trade higher in the market to increase their quarterly results before any sell off can be seriously considered in the short term.
We are firmly bullish in the long term. There is at least 5 years more of upward movement in the global markets but not all in a straight line. As long as the 89MA remains support the recession is over and a double dip is unlikely.
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Stock Market Investment Workshops, ebooks & financial freedom @ http://www.wealthskills.co.za/
Wednesday, January 13, 2010
Caution: Shooting star candles
This was the subject line of an urgent mail sent to our trading and investment clients on Tuesday morning 9h05!
Caution: Shooting Star candles across the stock markets and indices especially for Resources so take caution today.
We considered that short term traders should take profits and that investors be aware of a pull back but to use it as an opportunity to add to their existing investment positions at a discounted price in the resource rally.
Some prices have already bounced including Kumba our preferred stock pick. It pulled back to the moving average as support at 31600c and is now sitting right back at 330000c in just 2 days.
Platinum stocks had a similar experience. Some sectors like construction failed to secure a higher top so therein lies a potential opportunity to short the sector and construction stocks like Murray (target 4000c) and Group 5 as well to name a few.
We also discussed how the pharmaceutical sector have topped out and are due for a pull back and it happened this week. Aspen is now testing the 50ema support at 7000c and for medium term investors could prove to be a fair entry level as this is off the high of 7350 or so and provides an opportunity to enter with a 5% discount. It may be early however. Consider confirmations...
GOLD Futures reached $1145 and beyond in the recent rally discussed from $1075 low. The dollar yoyo effect is playing havoc with short term position calls so it is best to wait it out until the dust settle and take the next swing position as it comes.
Keep an eye on TECH stocks.
Best stock trading this quarter.
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
Caution: Shooting Star candles across the stock markets and indices especially for Resources so take caution today.
We considered that short term traders should take profits and that investors be aware of a pull back but to use it as an opportunity to add to their existing investment positions at a discounted price in the resource rally.
Some prices have already bounced including Kumba our preferred stock pick. It pulled back to the moving average as support at 31600c and is now sitting right back at 330000c in just 2 days.
Platinum stocks had a similar experience. Some sectors like construction failed to secure a higher top so therein lies a potential opportunity to short the sector and construction stocks like Murray (target 4000c) and Group 5 as well to name a few.
We also discussed how the pharmaceutical sector have topped out and are due for a pull back and it happened this week. Aspen is now testing the 50ema support at 7000c and for medium term investors could prove to be a fair entry level as this is off the high of 7350 or so and provides an opportunity to enter with a 5% discount. It may be early however. Consider confirmations...
GOLD Futures reached $1145 and beyond in the recent rally discussed from $1075 low. The dollar yoyo effect is playing havoc with short term position calls so it is best to wait it out until the dust settle and take the next swing position as it comes.
Keep an eye on TECH stocks.
Best stock trading this quarter.
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
Thursday, October 8, 2009
It's my Gold Rush!
I've been bullish on gold for over a month now! What a rush!
Ever since the gold price pushed to test the support level at around $915 little over 6 week's ago I was bullish. The upside target on the gold chart is $1250!
Now from the small pull back from $1024 level to $990 again the gold price has shot up to a record of $1050 since Monday. The gold index in South Africa has skyrocketed almost 10%!
What's the reason? Some of the reason is due to the dollar weakness in the global economy as inflation takes it's toll. But also there has been a debate about the price of oil being derived from a basket of commodities rather than the dollar alone.
Guess which commodity is being considered as part of the basket of assets to price oil in future?
You got it! It's GOLD!
The Australian FED bank also increased interest rates as the first bank to start doing so as the global economy shows signs of ticking up. The combination of all these things has pushed the gold price to break records!
The medium term outlook on gold is to target $1250. We will have various waves of upswing followed by profit taking before we get there.
Be prepared to ride the waves and walk away with reasonable trading profits! Don't be greedy!
I've moved my stop loss levels to entry now. Looking to close half of my positions on the stock market in the resources sectors.
For our weekly Market Outlook newsletter visit our website link below:
Financial & Investment Workshops, ebooks & financial freedom @ http://www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
Ever since the gold price pushed to test the support level at around $915 little over 6 week's ago I was bullish. The upside target on the gold chart is $1250!
Now from the small pull back from $1024 level to $990 again the gold price has shot up to a record of $1050 since Monday. The gold index in South Africa has skyrocketed almost 10%!
What's the reason? Some of the reason is due to the dollar weakness in the global economy as inflation takes it's toll. But also there has been a debate about the price of oil being derived from a basket of commodities rather than the dollar alone.
Guess which commodity is being considered as part of the basket of assets to price oil in future?
You got it! It's GOLD!
The Australian FED bank also increased interest rates as the first bank to start doing so as the global economy shows signs of ticking up. The combination of all these things has pushed the gold price to break records!
The medium term outlook on gold is to target $1250. We will have various waves of upswing followed by profit taking before we get there.
Be prepared to ride the waves and walk away with reasonable trading profits! Don't be greedy!
I've moved my stop loss levels to entry now. Looking to close half of my positions on the stock market in the resources sectors.
For our weekly Market Outlook newsletter visit our website link below:
Financial & Investment Workshops, ebooks & financial freedom @ http://www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
Wednesday, February 18, 2009
GOLD ~ The winning sector
Many moons ago I learnt a really powerful yet simple equity methodology for determining the performance of the different sectors against the market. I do this because I want to know where the money is. Whose money you ask?
The Fund Managers and the Institutes money is key to really making decent money in the stock market. One could follow what the fund managers are doing after the fact and buy what they buy. I prefer to pick it up from the market itself. Generally speaking, the fund managers can't dump hundreds of millions on the market all in one day.
After learning this great skill, albeit simple, I am able to track down the Big Daddy money out there. Once I have done that I go over the sectors with a fine tooth comb to find the shares within those sectors that are the best performers somewhat hand-picked to be on the fund managers team. Those left behind after all the slots are taken get a seat on the bench and don't get to score.
The Gold Index signalled a recent buy in the week of the 16th-23rd of January 2009. Some of the gold mining shares have doubled in less than 2 months. Is it time to get in there now? Not likely. Chances are you have missed the boat. Better not to chase it now...
DRD Gold and Anglogold signalled on my Big Daddy Money system in December already. DRDGold triggered around the 2nd week of December at around 435c and is now over 800c. AngloGold has gone from around R200 to over R300 this week.
But I will be waiting to add to my investment positions as there could well be a pull back or retracement before the gold shares move onwards again. But I will be keeping an eye on it like a hawk.
DRD has been the best performer with Anglogold following closely behind. Some less traded shares like Afgold and GBG Gold also have had some really good moves.
Keep an eye out for our next post about the Yield X on the bonds. Do you own a homeloan? Well, as the debt cycle peaks and the interest rate committee begins to waver under the economic pressures of a debt-laden consumer you could bank money as the interest rate drops off.
Look out for that as we develop some more info on that topic.
Financial & Investment Workshops, ebooks & financial freedom @ http://www.newsweek.co.za/ Check out our NEW ALSI Apprentice!
The Fund Managers and the Institutes money is key to really making decent money in the stock market. One could follow what the fund managers are doing after the fact and buy what they buy. I prefer to pick it up from the market itself. Generally speaking, the fund managers can't dump hundreds of millions on the market all in one day.
After learning this great skill, albeit simple, I am able to track down the Big Daddy money out there. Once I have done that I go over the sectors with a fine tooth comb to find the shares within those sectors that are the best performers somewhat hand-picked to be on the fund managers team. Those left behind after all the slots are taken get a seat on the bench and don't get to score.
The Gold Index signalled a recent buy in the week of the 16th-23rd of January 2009. Some of the gold mining shares have doubled in less than 2 months. Is it time to get in there now? Not likely. Chances are you have missed the boat. Better not to chase it now...
DRD Gold and Anglogold signalled on my Big Daddy Money system in December already. DRDGold triggered around the 2nd week of December at around 435c and is now over 800c. AngloGold has gone from around R200 to over R300 this week.
But I will be waiting to add to my investment positions as there could well be a pull back or retracement before the gold shares move onwards again. But I will be keeping an eye on it like a hawk.
DRD has been the best performer with Anglogold following closely behind. Some less traded shares like Afgold and GBG Gold also have had some really good moves.
Keep an eye out for our next post about the Yield X on the bonds. Do you own a homeloan? Well, as the debt cycle peaks and the interest rate committee begins to waver under the economic pressures of a debt-laden consumer you could bank money as the interest rate drops off.
Look out for that as we develop some more info on that topic.
Financial & Investment Workshops, ebooks & financial freedom @ http://www.newsweek.co.za/ Check out our NEW ALSI Apprentice!
Wednesday, January 28, 2009
Update on JSE All Share Index
Update on the JSE All Share
We have been trading a fantastic long on the market this week especially in Gold and gold shares. But the general market also referred to as the All Share Index, has had a significant week of upside.
How did we become aware of the move in the market over the last week? We use our technical analysis of local and some international stock markets. We get an overview of the local stock market using different fundamental and technical indicators. For instance, our position on GOLD from last week was to buy from around the $840 mark and to sell at $880 this week.
Buy understanding some chart patterns, in particular the ascending triangle pattern, we could plot an expected target of $140 possible upside to the Gold price once the gold price broke above $830 last week. This also triggered our positions in gold shares like GoldFields and AngloGold from Monday this week. We have since closed our positions yesterday as we saw on our short analysis that Gold could pull back slightly, likely due to profit taking. So we moved our money off the table as well.
ALSI End of Day Report: we are at the 21 day EMA and we have resistance at 19360 on our LIVE 15 min chart. There is also a double top pattern formation on the ALSI live at the moment which suggests some downside after the nice bull rally we have experienced.
The MACD is about to cross down as well on a LIVE chart with the Stochastic 13 also looking very overbought. All of these types of indicators suggest some sell off in the ALSI 40 index today and tomorrow.
Fundamentally speaking however, the CPI and PPI are being anounced in South Africa this week. CPI was very positive yesterday which will add comfort to the market going higher. Once the interest rate cut which is said to follow next week, this will inflate the local JSE market to the upside.
Keep an eye on Sasol as it may have a pull back to around 26500c over the next few days. Obviously keeping an eye on Brent Crude oil would be a good idea at this point. Well, we keep an eye on it at any point when it concerns our position on Sasol. The two are very much linked to each other.
For more info on learning to assess the market the way we do... go visit www.tradingmoneytree.com and www.newsweek.co.za We have also put together a free basic tutorial about money and investing.
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
We have been trading a fantastic long on the market this week especially in Gold and gold shares. But the general market also referred to as the All Share Index, has had a significant week of upside.
How did we become aware of the move in the market over the last week? We use our technical analysis of local and some international stock markets. We get an overview of the local stock market using different fundamental and technical indicators. For instance, our position on GOLD from last week was to buy from around the $840 mark and to sell at $880 this week.
Buy understanding some chart patterns, in particular the ascending triangle pattern, we could plot an expected target of $140 possible upside to the Gold price once the gold price broke above $830 last week. This also triggered our positions in gold shares like GoldFields and AngloGold from Monday this week. We have since closed our positions yesterday as we saw on our short analysis that Gold could pull back slightly, likely due to profit taking. So we moved our money off the table as well.
ALSI End of Day Report: we are at the 21 day EMA and we have resistance at 19360 on our LIVE 15 min chart. There is also a double top pattern formation on the ALSI live at the moment which suggests some downside after the nice bull rally we have experienced.
The MACD is about to cross down as well on a LIVE chart with the Stochastic 13 also looking very overbought. All of these types of indicators suggest some sell off in the ALSI 40 index today and tomorrow.
Fundamentally speaking however, the CPI and PPI are being anounced in South Africa this week. CPI was very positive yesterday which will add comfort to the market going higher. Once the interest rate cut which is said to follow next week, this will inflate the local JSE market to the upside.
Keep an eye on Sasol as it may have a pull back to around 26500c over the next few days. Obviously keeping an eye on Brent Crude oil would be a good idea at this point. Well, we keep an eye on it at any point when it concerns our position on Sasol. The two are very much linked to each other.
For more info on learning to assess the market the way we do... go visit www.tradingmoneytree.com and www.newsweek.co.za We have also put together a free basic tutorial about money and investing.
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
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