AI
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Friday, September 30, 2005 4:20:37 AM
***HUI, possible 2 year long W-top taking shape here? I feel that bulls at this level are placing the wrong bet if they are planning on anything so long as a swing trade... earnings reports are starting in October, and October is only days away, rude awakening will set in.
To compensate for the lost earnings due to high energy prices, I figure $GOLD would need to break $519-$529+ an ounce for the HUI to break out of this potential W-top formation I see... and like I said, it makes perfect sense for a "bull-trap" here in the equities just days and weeks before the earnings reports come out in earnest.
Thus, my forecast calls for a W-top. Case in point, look at NEM, NEM stands for Newmont Mining, it is arguably the bellwether for all of the gold stocks due to its' current market cap of 21.44 billion, yet it trades at a current P/E of 47.48, that's simply outrageous and unwarranted.
As far as physical $GOLD goes, physical $GOLD will NEVER lose its value and I feel that it will go down as arguably the greatest INVESTMENT of my lifetime, and of course it has a lot of catching up to do with oil, and word on the street is wealthy oil countries are divesting their profits out of paper dollars such as the Euro or the USD and putting it into PHYSICAL $GOLD!
With that said, I always will and have always liked physical $GOLD, but the stocks concern me at this point, go back to the crash of 1987 for instance. It's fact that every sector on the market sank with that crash, including the gold stocks, but did you know that it wasn't until AFTER the crash's bottom that $GOLD began sinking?
See #msg-7784357 for what happened in 1987!
CONCLUSION: bullish on physical $GOLD, just neutral to cautious on stocks leading up to and into earnings!
To compensate for the lost earnings due to high energy prices, I figure $GOLD would need to break $519-$529+ an ounce for the HUI to break out of this potential W-top formation I see... and like I said, it makes perfect sense for a "bull-trap" here in the equities just days and weeks before the earnings reports come out in earnest.
Thus, my forecast calls for a W-top. Case in point, look at NEM, NEM stands for Newmont Mining, it is arguably the bellwether for all of the gold stocks due to its' current market cap of 21.44 billion, yet it trades at a current P/E of 47.48, that's simply outrageous and unwarranted.
As far as physical $GOLD goes, physical $GOLD will NEVER lose its value and I feel that it will go down as arguably the greatest INVESTMENT of my lifetime, and of course it has a lot of catching up to do with oil, and word on the street is wealthy oil countries are divesting their profits out of paper dollars such as the Euro or the USD and putting it into PHYSICAL $GOLD!
With that said, I always will and have always liked physical $GOLD, but the stocks concern me at this point, go back to the crash of 1987 for instance. It's fact that every sector on the market sank with that crash, including the gold stocks, but did you know that it wasn't until AFTER the crash's bottom that $GOLD began sinking?
See #msg-7784357 for what happened in 1987!
CONCLUSION: bullish on physical $GOLD, just neutral to cautious on stocks leading up to and into earnings!
HI-HO SILVER !!!
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