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PMS Daily Digest for Thorsday, July 31


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To continue the discussion of MFN vs MDG with MAB.

Not that stubborn, can't afford stubbornness but stubborn is as stubborn does. I will not be buying MDG based on its fundamental case. I'm one who wants to see it in the charts. I will miss some screamers for sure but I'll miss many rockfalls as well. I'm not saying MFN is my top pick; I'm only giving it a turd. MDG is still in the cellar lying 15 games out of first place. Will it win the pennant? I doubt it. Will it move up the table? I don't know, but you obviously think so.

I only have really 1 criterium for buying stocks. Which one will make me the most money in the timeframe I'm looking at on a risked basis. In order to alleviate risk I take out smaller positions in a number of issues rather than put all my EGOs in one basket. I look in the basket but I don't see MDG. It used to be there and it may be in there at some time in the future but it ain't there now. I see NEM in there, in the middle. It wasn't in there before.

 

There is a trading strategy called Dogs of the Dow so there's a play for everyone. You can post what you like. I assure you it in no way annoys me especially as I've heard your bite is worse than your bark and the wall between us is rather large. So by all means if your Dogs of the DAu works you'll make lots of PAL.

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Looking at the shorter timeframes (24 -30 min) the XAU is due for an up phase. I didn?t go long yesterday because I don?t believe the coming SWUP will be THE reversal in the longer timeframes. Maybe we go up for a few days but IMHO the XAU and the HUI still have unfinished business with the SWDN phase of the 8n day cycle.

 

I find it hard to believe the tiny correction from late June to mid July was the entire SWDN phase of the 8n cycle. When we busted though resistance last week it really screwed things up for my simple mind BUT it looks like that may lead to a lovely bearish divergence in the MACD (daily) which if resolved to the downside will give me the bottom I so desire.

 

I am a bit worried that the SKI man went long yesterday. His timing is quite good, second only to Thor of course. If only the 123 guy would go long we might get the sell off we need.

 

Is it possible the aborted 8n SWDN phase was due to EOM? In any case I'm going to wait for the next up phase on the 24-30 min charts to play out which should happen soon and last for a few days.

 

Regarding silver - without PHYSICAL demand exceeding supply the price will not go up. Paper shorts cant supply the factory with paper and keep the price down - simple as that IMO. I think there are huge supplies somewhere (China?) that need depleting before the rocket launch. Of course one never knows when the launch is coming but for me I can?t tie up assets waiting for the Chinese to run out and I just hate newsletter writers anyway. :lol:

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:D Shouldn't be long now people. Unlikely in the extreme that the $USD would somehow breakout of this trend. Solid POG support at $353 38.2% and again $346 50%. Good PM's showing strength. The 5 pillars are in place, and the burners are ignited. Oh yes, this baby is gonna blow.

 

Ah feel GOOD, da nah nah nah nah nah.

 

BAA

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Good stuff BAA. For Spec, the SKI guy. He's been wrong on many occasions as well. In fact, he was short during part of the recent rally. His system is more intriguing to me than a reliable indicator. (it's basically another wave theory in addition to elliot, 5 cycles, etc)

 

SKI Gold Stock Prediction

 

Gold stocks fell slightly today, with USERX dropping 6 cents to 5.42. Today's drop completed the prediction from last week that USERX would fall to retest the breakout point. That breakout occurred on the 35-39 index buy signal executed last Wednesday at 5.43. So we are one penny lower than the breakout. It all looks perfect (heaven forbid), as the 16-20 index back prices are currently providing support with prices at the 5.39 level. We are on an XXed Out double buy signal, a powerful buy signal portending a 21% rise within the next 16 trading days. The XXing Out says that this buy is wrong, that the 8 straight days up into Monday marked a major high. I/We will find out soon.

 

I went long 50% at today's close and therefore bought in one freaking penny lower than the index bought last Wednesday at 5.43 (whoopee, but as expected, and I avoided 5 days of risk). My skeptical colleague went long 100% due to my continuing bullish perspective. Each to his/her own strategy and money management practices. It was also a fairly nice day to buy with gold down $5, but an unfilled gap remains about $4 lower.

 

http://www.321gold.com/editorials/kern/current.html

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When we busted though resistance last week it really screwed things up for my simple mind

You and me alike.

 

Two things of potential importance I've noticed over the last couple of cycles:

 

1.) POG and HUI cycles were relatively in synch but have become signifigantly decoupled. I can't see any reason to believe that's it's nothing shy of traders anticipating cycles in increasing numbers and jumping into mining equities early (I haven't studied the getting out part, apologies - "personal crap" intereference). Why the disparity between the commodity cycle and the equity cycle? I'm open to suggestions, however, at a guess I'd toss "easier for more folks to buy shares than to buy metal or meet COMEX paper requirements".

 

2.) The stochastic cycle I've been using loosely for the HUI (loosely because because I don't study the the HUI cycle in much depth) has been closer to matching the highs and lows of the POG lately than the HUI. This is most curious and, IMO, yields further evidence to the anticipation theory above. That is to say - I think people are playing the miners based on the metal but, as people will be people - greed and fear are skewing price action (of the equities).

 

In conclusion I can't help but wonder if, from a purely technical viewpoint, the offsetting of the two cycles isn't going to be what ultimately yields patterns that either thrust us up or drop us off to extreme. Only problem is, who of us around here is accomplished enough to pick up those patterns and interpret them correctly? Were it I, I'd have left for my own personal island of hotties that take a lickin' and keep on tickin' a very long time ago. Gee... can I say that on t.v.? :rolleyes:

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It's amazing what you can see when you zoom out on them charts - BAA's buck for example - and for all the other stool samples that come every day. :grin:

 

Got ahold of the Investors Business Daily and scanned over the "SelectSmart" ratings for the golds. For your info it is set up like this from left to right:

SmartSelect rating - Earnings per share - RSI - Industry Group strength - Sales + profit - Accumulation.

 

So, here they are unsorted by smartselect - tell me what you see

AU: 45-49-56 D- B B-

ABX 20-27-43 D- C C

AEM 12-22-23 D- D B

FCX 98-83-87 C+ A A

HMY 28-72-21 D- B B-

GG 73-89-51 D- A B

GFI 32-62-26 D- B B-

GLG 32-9-61 D- B B+

MDG 20-37-15 D- C C

NEM 58-46-70 D- B B+

RGLD 84-84-72 D- D B

 

Looks like FCX, RGLD, and GG have the strongest set of numbers

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Financial System Liquidation May Not Exempt Gold!

 

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Thanks Charm. Think though that such valuations are really only providing a snapshot of different indicators. It's so hard to make that quantifiable, since all ratings should be weighed in a different proportion. Complicated stuff :blink:

 

Just dropping some gas.

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