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-- Posted Tuesday, 11 February 2003 | Digg This Article
April Gold: Close = $363, -$1.2
There was quite a tug-o-war going on today. The NY session started out just slightly ahead, sank to the session low of $361, battled higher to a peak of 366.2 and then sold off in the last hour to end moderately lower. We’ve dropped over $13 in the last several sessions, and considering many long positions had accumulated prior, it’s not such a bad thing to have prices correct and perhaps shake out some of the easily spooked bulls. After all, lower prices are what could attract more bulls. The US dollar and stocks continue to wander aimlessly to lower as faith in the might of the US economic engine has dimmed and as trepidation regarding the outcome of a war with Iraq builds. Powell speaks of a soon to be released recording in which someone believed to be Bin Laden is speaking of his struggle against America and how he is in partnership with Iraq. Certainly this is more ammunition towards the cause of disarming Iraq and surely injects additional nervousness into the financial markets and conversely should support gold. The usual cast of characters such as France and Germany remain unconvinced of the need to disarm Iraq, but the energy markets took notice of the new recording and crude rallied over 100 points today. With the RSI in overbought territory, with it exhibiting bearish divergence (where prices make a new high yet the indicator doesn’t), and with too many weak longs having accumulated, gold was ripe for some profit-taking going. However, the tension regarding the Middle East continues on the forefront of investor’s minds and will likely offer a floor or support. Until the war on terror and the issue with Iraq quiets down a bit, it’s not likely consumer confidence will strengthen enough to breathe new life to stocks. A pullback of $10 or so did occur from late last week, and on our TradeScope we bought, but not before we purchased puts ahead of time as a hedge. So far, so good. Be sure to watch TradeScope daily, and remember, futures and options offer flexibility as one can just as easily be short or long any market. Each contract/option = 100 ounces, a $1 move in a futures contract = $100. Contact me anytime to discuss strategies to fit your needs.
To open an account and receive trading recommendations on gold futures or options contracts (also stock indices, energies, currencies, etc.), or to use PaperTrader Online contact me at erik@altavest.com. Visit www.altavest.com to request a Free Starter Kit. Keep in mind that there is risk of loss in all trading.
March Silver: Close = $457, -3.0-cents
It’s tough not to sound like a broken record on this one, but as the fortunes of gold come and go, so too do silvers. Gold has sold off the last few sessions and has subsequently dragged silver down. There has been a lack of fresh internal fundamental news for some time; action has been led by gold. The dip in gold may attract buyers into the yellow metal and this would infer that the white metal will appreciate as well. Remember the bearish seasonal, wherein from approximately 2/5 to 2/25 silver has fallen an average of about 18 cents? Well, it appears to have worked like a charm this year. Each contract/option = 5,000 ounces, a 1-cent move in a futures contract = $50. Contact me anytime to discuss strategies to fit your needs.
To open an account and receive trading recommendations on silver futures or options contracts (also stock indices, energies, currencies, etc.), or to use PaperTrader Online contact me at erik@altavest.com. Visit www.altavest.com to request a Free Starter Kit. Keep in mind that there is risk of loss in all trading.
-- Posted Tuesday, 11 February 2003 | Digg This Article
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