I am going to deviate a little today being I did post 3 touts over the week end. I am going to postulate on what could happen if my indicators are correct and there is a rally this coming week. I have already covered gold so I will cover two others in a group session. All work is based upon the daily chart.
SIU9 last: 12.665. The D for the move down is 12, I am rounding for ease of typing. For price to rally it would have to go through 13.20 and then P would be 13.75. If short I would use a stop at 12.70. On the way to 13.20 there should be resistance at 12.85 and 13.00. There should be some congestion around the 13.20 area and maybe a slight retracement. At this time pressure is trying to turn up from an over extended area on the chart. On a longer term chart Price was rejected at PO2 = 16 and this current retracement began from that level.
HGU9 last: 221.95 Price has been trying to reach PO2 at 211 and been unsuccessful on the move down. For price to move higher it would have to go through 229.30 and then P would be 242. Look for resistance at the 234 level. There could be a slight move down to a support area of 219 to 220. On a longer term chart Price met resistance at P=239 and this is a retracement down from that number.
Silver is halfway between gold and copper as a fundamental entity. It is both an industrial metal as well as a semi geopolitical barameter. Its value is determined at times by manufacturing demand and at other times it is a reflection of the buying power of the dollar and inflation hedge. Take note that today is 13th and if you are superstitious it could be a trouble day.
Gold As Insurance
by Rick Ackerman on July 13, 2009 12:01 am GMT · 10 comments
(Following is the third installment in a series of articles by Chuck Cohen, a seasoned and highly successful investment consultant who lives in New York City. We will be featuring Chuck’s thoughts regularly at Rick’s Picks in order to expand our coverage, in particular, of junior mining shares, a core area of his expertise. In the coming weeks, Chuck will take up the topics of gold as a core investment, and gold as a speculative vehicle. Today he tackles gold’s usefulness as insurance against financial calamity“. RA)
No One-Size-Fits-All Strategy
In spite of the sharp drop in shares over the past nine years or so, most investors remain firmly committed to common stocks. Mutual fund statistics show that very few holders have pulled their money out of their funds. And the recent “Big Money Poll” in Barron’s shows that the big guys are even surer than they were even at the very top. It is clear that investors have been stirred, but far from shaken, by the decade’s decline and by our faltering economy.
And gold? To many investors and even professionals, buying gold is like traveling to Myanmar or northern Pakistan: Few dare to venture there. The truth is, that to our Ivy League and Keynesian educated financial community, gold is viewed as a superstitious » Read the full article