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 index. Show all posts
Showing posts with label gold index. Show all posts
Thursday, October 7, 2010
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.
Sunday, February 22, 2009
ALSI & Market Outlook
ALSI & Market Outlook
I just finished downloading the data from Friday's stock market close. What a turn of events. It looked as if the market was going to be depressed and close down badly in the red. The along comes the gold sector and platinum sector which was having none of it.
In essence, the ALSI regained its losses for the day and eventually went right back to close the gap left when it opened in the morning. The gap down was significant. The stock market was red everywhere!
It just so happened that I got just over 100 points around mid morning which was followed by another 200 points late in the afternoon if I had been at my pc. I had a client to meet about a particular strategy he had heard about and wanted to discuss it over with me. I happened to be in Rivonia at the time the trigger happened. Such is life.
It just so happens that looking at the Resources Index, a.k.a the RESI, the market certainly looked to be heading further south. Considering however how the gold and platinum sectors closed off our resources heavy top 40 index swung in the late afternoon.
Many safe haven investors taking to the apparent refuge of gold and other precious metals like platinum with the aim of protecting their capital. Both Anglo Gold and DRD Gold have made new highs as discussed they might last week. Platinum is looking strong to test the R150 resistance if it can break above the old resistance of R145 which it closed on Friday afternoon.
Considering the ALSI end of day chart, there could well be a swing come Monday morning depending on the close of USA on the Dow and SNP. It doesn't look good right now as both of them made new lows. It would be worth a look at the FTSE. We could well look for some confirmation from the movement Monday morning when the FTSE opens.
The ALSI end of day chart does indicate very oversold position with stoch and rsi below 30 and 10 respectfully. Immediate resistance is at the close of 17681 with support at 17160. We could find ourselves challenging 18071 if the open is positive and the market swings bullish.
The low oversold levels on the indicators imply a 200-300 upside in the morning but again lends itself to the sentiment of the US close which was negative. One may like to look at the Asian open to confirm our direction until FTSE opens.
I would consider the LIVE charts as well and seeing as though we closed up on my LIVE charts I conclude that 17426 is 1st level support followed by ultimate support at 17210. 17844 seems a strong resistance level too on the upside.
It certainly warrants waiting for after the open to assess again the market sentiment. Bearing in mind that the end of day chart on the short term indicates a retracement with the medium term still implying probability of downside after a short pull back.
Keep an eye on AngloGold and DRD gold. Anglo American is heading into oversold position as well. and has broken recent support levels. But it may require another 2-3 days before it retraces briefly.
On closer look into DRDGold, the share does look overbought now. It is displaying a well known reversal pattern on a candlestick chart called a Morning Star. It closed on Friday with an upside hammer. There certainlys seems to be strong support at just below 900c.
DRD's old high of around 971c to 989c is set to be the strong resistance. The share's momentum may well fall off here and we may find it having a small retracement back to 692c and find support there again. It is vital to trace the movement in GOLD using the NewGold ETF as a precursor to how DRDgold and other gold derivative shares will perform.
We may only see a slight retracement of 23% to 789c before the momentum in the gold price forces the share onwards and upwards. Likewise with AngloGold. on DRD gold 875c is quite an important support level and would signal that the retracement is in play with potential to move to 789c.
It certainly pays to get access to good training regarding your trading.
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za ,
I just finished downloading the data from Friday's stock market close. What a turn of events. It looked as if the market was going to be depressed and close down badly in the red. The along comes the gold sector and platinum sector which was having none of it.
In essence, the ALSI regained its losses for the day and eventually went right back to close the gap left when it opened in the morning. The gap down was significant. The stock market was red everywhere!
It just so happened that I got just over 100 points around mid morning which was followed by another 200 points late in the afternoon if I had been at my pc. I had a client to meet about a particular strategy he had heard about and wanted to discuss it over with me. I happened to be in Rivonia at the time the trigger happened. Such is life.
It just so happens that looking at the Resources Index, a.k.a the RESI, the market certainly looked to be heading further south. Considering however how the gold and platinum sectors closed off our resources heavy top 40 index swung in the late afternoon.
Many safe haven investors taking to the apparent refuge of gold and other precious metals like platinum with the aim of protecting their capital. Both Anglo Gold and DRD Gold have made new highs as discussed they might last week. Platinum is looking strong to test the R150 resistance if it can break above the old resistance of R145 which it closed on Friday afternoon.
Considering the ALSI end of day chart, there could well be a swing come Monday morning depending on the close of USA on the Dow and SNP. It doesn't look good right now as both of them made new lows. It would be worth a look at the FTSE. We could well look for some confirmation from the movement Monday morning when the FTSE opens.
The ALSI end of day chart does indicate very oversold position with stoch and rsi below 30 and 10 respectfully. Immediate resistance is at the close of 17681 with support at 17160. We could find ourselves challenging 18071 if the open is positive and the market swings bullish.
The low oversold levels on the indicators imply a 200-300 upside in the morning but again lends itself to the sentiment of the US close which was negative. One may like to look at the Asian open to confirm our direction until FTSE opens.
I would consider the LIVE charts as well and seeing as though we closed up on my LIVE charts I conclude that 17426 is 1st level support followed by ultimate support at 17210. 17844 seems a strong resistance level too on the upside.
It certainly warrants waiting for after the open to assess again the market sentiment. Bearing in mind that the end of day chart on the short term indicates a retracement with the medium term still implying probability of downside after a short pull back.
Keep an eye on AngloGold and DRD gold. Anglo American is heading into oversold position as well. and has broken recent support levels. But it may require another 2-3 days before it retraces briefly.
On closer look into DRDGold, the share does look overbought now. It is displaying a well known reversal pattern on a candlestick chart called a Morning Star. It closed on Friday with an upside hammer. There certainlys seems to be strong support at just below 900c.
DRD's old high of around 971c to 989c is set to be the strong resistance. The share's momentum may well fall off here and we may find it having a small retracement back to 692c and find support there again. It is vital to trace the movement in GOLD using the NewGold ETF as a precursor to how DRDgold and other gold derivative shares will perform.
We may only see a slight retracement of 23% to 789c before the momentum in the gold price forces the share onwards and upwards. Likewise with AngloGold. on DRD gold 875c is quite an important support level and would signal that the retracement is in play with potential to move to 789c.
It certainly pays to get access to good training regarding your trading.
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za ,
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!
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