« Bond King is a tool of capital destruction, Wed. Mar. 8, 12:08 AM | Main | GDM as an ETF, Thurs., Mar. 9, 2006, 9:27 AM »

March 9, 2006

Alert: Gold will rally today, Thurs., Mar. 9, 2006, 3:39 AM

Goodness knows I consumed enough 25-year old rum from two til nine last evening to get a good night's sleep, but a bell went off in my head and I decided to check the market in Japan early. And then I checked gold because as the BoJ has decided against raising rates, not only would the Nikkei lift off, but so would gold. Enjoy.

It is a fitting conclusion to the round-up at PDAC 2006.

Here is the past five days chart for the Nikkei Dow (225 index), showing the explosive rally today.

013a019.gif


Here is the Gold Spot price and the recent day's chart. In a few hours it will look much better to the Gold Bulls.

013a017.gif

013a018.gif


I enjoy doing this for the Little People so much, I can't even sleep. Can you imagine?

And Barron's wonders why I do this free!

Posted by Posted by Bill Cara on March 9, 2006 03:50:27 AM | Category: Gold

Discourse

Bill-

Get some sleep! What if that young blonde asks you to tango again? :)

As for gold, good news. I am expecting the mining shares though will greet this rather mutedly. It is the index price vis a vis the bullion I am watching. The ratio keeps grinding lower setting up buying opportunities. When the Fed is done raising (and now the market is pricing two in for sure), they will be set to fly again. JMHO. I will be full in then.

Posted by: MarkM [TypeKey Profile Page] at March 9, 2006 6:33 AM [link]

Looking at the 15 Min Gold chart, the downtrend line was broken and I would be a buyer at that time (given my positive fundamental view and an oversold condition). I would have a risk management plan in place - "plan the trade, trade the plan" (thanks John H).

After corrections in the shares like we have had, I have found that I do much better if I trade off the trendlines like I described above. Over analyzing or trying to guess what will happen has been less profitable than simply letting the market tell me when to buy in. For example, look at this chart of RGLD http://stockcharts.com/h-sc/ui, if you simply traded on the trendlines and price oscillators, trading would appear easy.

Good luck!

Long RGLD (very low cost basis, looking to add more if it sets up right).

Posted by: g034 [TypeKey Profile Page] at March 9, 2006 7:52 AM [link]

Sorry for the bad link, RGLD chart was a daily over 8 months. This is not the only example that I could have given, just one I am watching.

Posted by: g034 [TypeKey Profile Page] at March 9, 2006 7:54 AM [link]

To g034s point, everyone should have a system or discipline that they follow. Makes trading decisions easier. I exited long mining positions at 10am Monday. Every dog has his day!

Posted by: MarkM [TypeKey Profile Page] at March 9, 2006 8:05 AM [link]

Nasty little head fake out of the oil stocks this morning. Prices heading lower? Rally and then sell into it.

Posted by: MarkM [TypeKey Profile Page] at March 9, 2006 11:07 AM [link]