Precious Metals and Stocks
After a lot of thinking outside my usual channels I got a bit excited about a few things. Namely Gold and Silver. I am well aware of the differences between Paper and Physical as well as trading PM's via Futures or Proxy Stocks.
Firstly, I had never understood why some people are hell bent on owning physical PM's. However, now I am seeing things a little differently now. After a bit of research and taking a good hard look at my ideas about investing I have changed my mind about owning physicals. I will not lie and say that the current price had no impact on my decision. It had quite a significant impact truth be told. I started looking at things purely from a 'value' point of view. There are too many reasons to list why I changed my outlook on Phys PM's. It does not really matter anyway. I have had a technical long bias on Gold for some time (paper at least) and there are now a few opportunities that have presented themselves.
I am fortunate enough to have some cash wanting to find a home. My plan is to move the cash into unleveraged and leveraged investments. Unleveraged being physical gold/silver and leveraged being PM stocks and/or outright positions in the cash market.
Technically, we could be seeing some sort of bottom in the Gold and Silver markets. COT data has shown in both markets that we have had our first week of positions not getting deeper i.e. they have not added to their positions. Funds did not get more bearish and Comms did not get more bullish. This is interesting given the bullish movements in Gold over the last 2-3 weeks or so. Typically reversals play out when the net position reverses from an extreme level and this coincides with price reversing also.
Anyway Gold got off to a solid start today and is trading above $1300 as I write. So if we hold above here I will be looking to buy a pullback (ideally above $1300) and hold for some time.
After flicking through a few Gold stocks one jumped out at me. Barrick Gold. I am purely looking at value. Looking at the monthly chart made my eyebrows nearly merge with my hair. That looks like a lovely 'potential' monthly bullish reversal bar. We are still a week and a bit away from this bar closing but it looks pretty promising. The upside potential is obvious and we are banging on pretty hefty historical support. Buy hold?
There are others and I may post them later but this will do for now.
Good trading to all.
After a lot of thinking outside my usual channels I got a bit excited about a few things. Namely Gold and Silver. I am well aware of the differences between Paper and Physical as well as trading PM's via Futures or Proxy Stocks.
Firstly, I had never understood why some people are hell bent on owning physical PM's. However, now I am seeing things a little differently now. After a bit of research and taking a good hard look at my ideas about investing I have changed my mind about owning physicals. I will not lie and say that the current price had no impact on my decision. It had quite a significant impact truth be told. I started looking at things purely from a 'value' point of view. There are too many reasons to list why I changed my outlook on Phys PM's. It does not really matter anyway. I have had a technical long bias on Gold for some time (paper at least) and there are now a few opportunities that have presented themselves.
I am fortunate enough to have some cash wanting to find a home. My plan is to move the cash into unleveraged and leveraged investments. Unleveraged being physical gold/silver and leveraged being PM stocks and/or outright positions in the cash market.
Technically, we could be seeing some sort of bottom in the Gold and Silver markets. COT data has shown in both markets that we have had our first week of positions not getting deeper i.e. they have not added to their positions. Funds did not get more bearish and Comms did not get more bullish. This is interesting given the bullish movements in Gold over the last 2-3 weeks or so. Typically reversals play out when the net position reverses from an extreme level and this coincides with price reversing also.
Anyway Gold got off to a solid start today and is trading above $1300 as I write. So if we hold above here I will be looking to buy a pullback (ideally above $1300) and hold for some time.
After flicking through a few Gold stocks one jumped out at me. Barrick Gold. I am purely looking at value. Looking at the monthly chart made my eyebrows nearly merge with my hair. That looks like a lovely 'potential' monthly bullish reversal bar. We are still a week and a bit away from this bar closing but it looks pretty promising. The upside potential is obvious and we are banging on pretty hefty historical support. Buy hold?
There are others and I may post them later but this will do for now.
Good trading to all.
Attached Image(s) (click to enlarge)
