1. Looks like the communist leaning New York Times is finally reaping what it has sown.
2. As predicted, AUY rolling over after its earnings miss. This action just confirms what the chart has been saying recently--which is that AUY is currently destined to perform at or under par with the HUI. The future remains bright however. Below $13, AUY becomes interesting. GSS also not behaving too well at the moment. Below $4.00 and $3.75 comes into play.
3. Hopefully TRE will finally roll over as it has been threatening to do for some time now. That will create a buying opportunity--though considerably lower than where it is now.
4. I wonder how low NEM will drop. Now that ABX is unhedged, it may eat NEM's lunch, at least in the near term.
5. A whole slew of earnings misses int he precious metals sector during the last couple of weeks. Hard to think of any companies that actually beat estimates. If you can think of any that beat estimates, let me know.
6. I'm still fretting about the COT dilemma.
5 comments:
I don't see any data coming out tomorrow that would give gold a good upside bounce, so my guess is GLD to test $65.00.
As silly as it seems the dollar is strong on the basis of a 16% decline in housing starts because of the spin from the networks that it was 2.5% more than last month. I wonder if the world figures it out overnight?
Anyway, I think gold will be rebounding by early next week. $630 is worst case downside as I see it.
It tested $65 as you mentioned. But I'm liking what I'm seeing right now in GLD. Look at that volume fly! Almost 5.5mil shares already and we still have 4 hours left to trade. I think that's a good sign.
ABX still has 9.5 mm oz of hedge in $300's. They call it "project hedges" and add the losses to the project instead of calling it a loss on the income statement.
I bought at the close today at a touch over 65.00, buying GLD, GSS, KGC, and GG
BTW, the reason I bought today was because I think consumer confidence will drop a bunch due to record high gas prices. Its already evidenced in retail sales, IMO. Also, if that doesn't help the cause, trade negotiations with China start tuesday, I think.
I also thought consumer sentiment would disappoint, but strangely it came in slightly ahead of expecations. Anyway, I think the U. of Michigan is not too reliable or relevant.
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