Wednesday, January 31, 2007
Sector Spotlight: Gold
Some of you have noticed, and I agree, Gold is breaking out. Again, my favorite way to play gold is via SVG or GLD.
Aside from Gold, the homebuilders are gapping, with outsized gains in LEV (bought out), WCI and BXG.
Food and Beverage stocks are green, with PNRA, WBD and SPTN leading the way.
The Trannies are on fucking fire, with gains in CHRW, LSTR, GBX and RAIL.
My point: Big money is rotating out of Tech into other sectors. Aside from a few Networker stocks and RIMM, nothing in techville seems to be working.
Personally, I do not like the Semi's, but I do not believe they are done going higher. Tech is taking a temporary respite, until earnings season is over. After all, being heavily long Tech going into earnings is equal to swimming in a swamp-- populated with fucking alligators.
Finally, I do not think the Fed will raise rates in 2007. Furthermore, I believe rates are too high. Should rates go lower, Lehman Brothers 20 yr bond etf (TLT) should crawl higher.
Aside from Gold, the homebuilders are gapping, with outsized gains in LEV (bought out), WCI and BXG.
Food and Beverage stocks are green, with PNRA, WBD and SPTN leading the way.
The Trannies are on fucking fire, with gains in CHRW, LSTR, GBX and RAIL.
My point: Big money is rotating out of Tech into other sectors. Aside from a few Networker stocks and RIMM, nothing in techville seems to be working.
Personally, I do not like the Semi's, but I do not believe they are done going higher. Tech is taking a temporary respite, until earnings season is over. After all, being heavily long Tech going into earnings is equal to swimming in a swamp-- populated with fucking alligators.
Finally, I do not think the Fed will raise rates in 2007. Furthermore, I believe rates are too high. Should rates go lower, Lehman Brothers 20 yr bond etf (TLT) should crawl higher.
Comments:
<< Home
Gold stocks fading rather quickly so this could be a fakeout breakout. Traders need to keep a finger on the trigger. If the Fed statement lowers the dollar it should be up, up and away for gold; if the dollar reacts by going up I would dump the gold stuff quickly.
You are a trading machine.
That's why I don't fuck around with Gold stocks.
I buy GLD or the levered index play SVG.
That's why I don't fuck around with Gold stocks.
I buy GLD or the levered index play SVG.
Mr. Broker A: I read the prospectus for SVG over the past weekend (between naps on the couch) and I think it said one is leveraged 3:1 on the upside to the XAU and only 1:1 on the downside. Is this your understanding?
Post a Comment
<< Home
