« Tipping my hat to an old friend, Tuesday, May 2, 2006, 1:43 AM | Main | Oil market powering north, Wed., May 3, 2006, 6:56 AM »

May 3, 2006

Precious metals and VIX powering north, Wed., May 3, 2006, 6:35 AM

The important VIX technical indicator is now indicating a massive change in investor sentiment to increased volatility. At the same time, the early precious metal spot prices today are powering north. Yesterday, the majority of the miners had big gains.

If you look at this table for yesterday's price performance, you will see that except for Royal Gold, the majority of losers were stocks of companies involved in Bolivia or Venezuela. If you strip out those from the PM list, most of the others had an impressive day.

003u009.gif

Also, this morning, the spot gold and silver price is higher, and the early futures indicate even stronger prices. I think traders are concerned about (i) the $USD (ii) the United Nations Resolution (#1) against Iran and (iii) the rising oil price.


003u010.gif


003u011.gif

Volatility today is a technical indicator that pro traders will be watching closely, particularly early in the day. Another will be the U.S. inventory numbers for gasoline and crude oil that are released at 10:30am.

003u012.gif

I'd say that early today, the broad equity indexes in the U.S. are not looking good for the bulls.

Posted by Posted by Bill Cara on May 3, 2006 06:35:29 AM | Category: Cara Today in the Market

Discourse

Everyone-

Thanks for the opportunity to share. I need to refocus on what's important to me again so this is a thank you and goodbye. It's been an interesting year.

I hope everyone makes tons of money and retires off this move. Looks like 1999 revisited to me.

Best,

MarkM

Posted by: MarkM [TypeKey Profile Page] at May 3, 2006 7:53 AM [link]

MarkM,

Hope you have time to check in once in a while.

Your comments have been helpful for many readers and I hope that you make tons of money and retire soon too. That would make more time for going to the ballpark this summer.

G

Posted by: g034 [TypeKey Profile Page] at May 3, 2006 8:15 AM [link]

MarkM,

Accck! I too have become a scairdy-cat at trading this sharply accelerating gold market except intra-day: it's come too far, too fast. Will miss your comments.

Jim

Posted by: omphalos [TypeKey Profile Page] at May 3, 2006 8:31 AM [link]

MarkM:

It's been a wonderful day in the sunshine here and with your help, please come back from time to time to say hello and hold a hand or two.

Best to you.

Posted by: C.Note [TypeKey Profile Page] at May 3, 2006 8:52 AM [link]

MarkM-

Thank you for all your input. You have been a big help to me.

I hope you can find the time to continue to contribute.

Posted by: davidtr4 [TypeKey Profile Page] at May 3, 2006 9:26 AM [link]

Thank you for your inputs. Hope to you see you soon.

Posted by: SmallCapFan [TypeKey Profile Page] at May 3, 2006 10:29 AM [link]

Mark M -- Thanks and good luck to you. I appreciated your insight, your technical acumen, and your level headedness.

EJ

Posted by: EJStockman [TypeKey Profile Page] at May 3, 2006 11:02 AM [link]

Yes, Mark. The same sentiments from me. Thanks, and best wishes.

Posted by: carriertom [TypeKey Profile Page] at May 3, 2006 2:50 PM [link]

All-

Thanks for the sentiments and wishes. I'll try to check in from time to time (perhaps weekends)to see how my friends are doing.

In the meantime, stick with your plan on gold, whatever that may be. And watch out for this market! The top is being put in no matter what happens to nominal index highs, okay? If your stocks don't advance, time to cull the herd.
Finally, diversify and hedge. It will benefit you in the long run.

Adios, MarkM

Posted by: MarkM [TypeKey Profile Page] at May 4, 2006 1:20 PM [link]