Thursday, July 12, 2007

Gold Stocks Continue To Shine

Today the gold index (XAU) was one of the strongest groups as the XAU rose over 3% making new highs for the year.

I've been posting a lot lately about buying these stocks and now we are really beginning to see them move.

Notice in the lower pane how the ratio line of gold stocks vs gold is rising which indicates that gold stocks continue to outperform gold.

I chased into some GDX today just to be long. If GDX retraces I will buy more. What I bought today was a very small position, about one fourth of what I plan on buying but I do have a full position in GLD which I bought the other day at lower levels. Gold today was up over 6 dollars for the December contract.


Gary said...

Oh Kevin if only you had stuck to your system on the DIA. Don't cut yourself short on AAPL. It's not going to decline by any serious amount until the market is done going up. The market isn't going to decline until the commercials start selling. They aren't sellers yet.

Kevin said...

Hi Gary,

I bought DIA today on the open and made back what I lost plus a lot more...Didn't you read my post from earlier today?

AAPL I will exit at my profit target.

Gary said...

Larry Holmes made the same mistake on PCU and FCX by exiting on a Point & figure price target now they are up another 20 and 24 points respctively.

Kevin said...

Good thing I'm not Larry Holmes.


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