Commodity Stocks Update
On January 20th before the recent rally, I posted the above chart explaining why I thought there was a buying opportunity in commodity related stocks. Since then many of these stocks have rallied rather nicely and I'm grateful for the way things have turned out so far.
The CRX index has closed above the December high. The next level to watch for is the high from May which is at 650.
Posts
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_4.gif)
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-euro-small.gif)
3 comments:
K-
Remember a few days back you talked about XAU spread?
Check this out by Tim
http://bp0.blogger.com/_DC_WvCGCWQ8/RcPPEvP5A_I/AAAAAAAAA88/LnnOGOCFiko/s1600-h/0202-%24xau.jpg
what do you think? Interesting area, where a potential short/long could be taken if 144 isn't broken.
I'll tell you one thing, that is one big chart. The person who drew that chart is pointing out the possibility of a head and shouders top but the XAU would have to break below 129 for that topping pattern to be triggered.
I think that people are under estimating the ability of commodities to really move higher in the coming months/years. Is there any way for oil to go (over the meduim term) then up !? I do not think so, unless the U.S. invests LARGE amounts of money into an alternative energy source. If they pull out of Iraq the funds could be there and then potentially less trouble from the likes of Ven and Iran as there would be less oil money floating around. But these ideas are years and years away even if started today.
Post a Comment