This past weekend I was watching Wall Street 2 on HBO. During the course of one of his monologues Gordon Gekko, played by Michael Douglas, said, “Bulls make money, Bears make money and Pigs get slaughtered.”
Did Gekko spell pigs P-I-I-G-S?
Over the past several months the world markets have closely watched the soap opera regarding European debt play out. Perhaps we have mistakenly fixated on the Greek and Portuguese characters when we should have focused on the 800-pound gorilla, Italy.
One group of people who did have their eyes on developments in Italy were safe haven investors, i.e., gold speculators. Physical gold and its exchange-traded funds had a strong surge, pushing gold above an important resistance level at $1,550.
This group of investors led gold to new euro/gold highs (something I mentioned previously in Silver Is Now a Value Buy). This was all before Tuesday’s news of the downgrade of Ireland and the possibility of another round of quantitative easing by the Fed. That's when the whole world started piling in.
Gold surged again, seeking out the all-time highs of $1,577.40 and falling just $10 short.
Click to enlarge
SPDR Gold Shares (GLD) saw a similar surge, which may well continue in the days to come as the market begins to price in the Irish default and a possible QE3. The ETF is forming a short-term bull flag and holding well above the 210-day moving average. But with rapid price spikes come rapid declines. SmartStops has the short-term and long-term stops for GLD at $147.52 and $142.55. It is very likely GLD will take out the all-time highs of $153.61.
Click to enlarge
Click to enlarge
A surprise development from Tuesday’s news was the revival of the gold and silver miners. For several weeks, during the commodity sell-off, which was sparked by increased margin requirements for precious metals, the miners were in decline and then range-bound. Silver Wheaton (SLW) was trading below its 210-day moving average, a fairly bearish indicator, as was the Market Vectors Gold Miners ETF (GDX). But on Tuesday that pattern may have changed. If SLW continues to rise it may keep going till the next resistance point at $42. SmartStops has the short-term and long-terms stops for SLW at $33.16 and $29.94.
Click to enlarge
Click to enlarge
I’m less confident about GDX as it still below the 210 moving average but a few component stocks of the ETF, Goldcorp (GG) and Barrick Gold (ABX), saw impressive runs on Tuesday.
Editor's Note: For more, visit SmartStops.net.
Did Gekko spell pigs P-I-I-G-S?
Over the past several months the world markets have closely watched the soap opera regarding European debt play out. Perhaps we have mistakenly fixated on the Greek and Portuguese characters when we should have focused on the 800-pound gorilla, Italy.
One group of people who did have their eyes on developments in Italy were safe haven investors, i.e., gold speculators. Physical gold and its exchange-traded funds had a strong surge, pushing gold above an important resistance level at $1,550.
This group of investors led gold to new euro/gold highs (something I mentioned previously in Silver Is Now a Value Buy). This was all before Tuesday’s news of the downgrade of Ireland and the possibility of another round of quantitative easing by the Fed. That's when the whole world started piling in.
Gold surged again, seeking out the all-time highs of $1,577.40 and falling just $10 short.
Click to enlarge
SPDR Gold Shares (GLD) saw a similar surge, which may well continue in the days to come as the market begins to price in the Irish default and a possible QE3. The ETF is forming a short-term bull flag and holding well above the 210-day moving average. But with rapid price spikes come rapid declines. SmartStops has the short-term and long-term stops for GLD at $147.52 and $142.55. It is very likely GLD will take out the all-time highs of $153.61.
Click to enlarge
Click to enlarge
A surprise development from Tuesday’s news was the revival of the gold and silver miners. For several weeks, during the commodity sell-off, which was sparked by increased margin requirements for precious metals, the miners were in decline and then range-bound. Silver Wheaton (SLW) was trading below its 210-day moving average, a fairly bearish indicator, as was the Market Vectors Gold Miners ETF (GDX). But on Tuesday that pattern may have changed. If SLW continues to rise it may keep going till the next resistance point at $42. SmartStops has the short-term and long-terms stops for SLW at $33.16 and $29.94.
Click to enlarge
Click to enlarge
I’m less confident about GDX as it still below the 210 moving average but a few component stocks of the ETF, Goldcorp (GG) and Barrick Gold (ABX), saw impressive runs on Tuesday.
Editor's Note: For more, visit SmartStops.net.
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