Posting Times

Posts will be between 8:30 PM to 10:00 PM PST
Mikey's Short Term Trading Rules

1) Make up a list of stocks, commodities or ETF's to trade. This list should be names that have good earnings and high relative strength.
2) Monitor this list and throw out the weaker names
3) Buy only stocks or ETF's that are intermediate and daily up (green) and the market is Daily and intermediate term up (green)
4) Buy pullbacks on these stocks to the 20 and 50 day averages
Usually you get 4 to 6 20 day pullback buys and 2 or 3 50 day pullback buys in an intermediate term trend
5) More agressive traders can buy the 7 day average in the first 3 to 8 weeks of the uptrend.
6) Buy pullbacks not runups. A buy should not be easy or exciting but difficult and somewhat scary. DO NOT CHASE
7) Place stop at 5% below the buy price. Do not remove
8) Sell 3 to 5 days after the stock price takes out its most recent 2 week high with at least 15% gains
9) Uptrends that are 12 weeks or more may be ripe for a correction. The first 2 pullbacks to the 50 day are usually safe.
Intermediate term uptrends and downtrends generally last from 8 to 16 weeks with 12 weeks being the norm.
10) Shorting is a viable strategy in downtrends for experienced traders only. In general, reverse the above rules
11) Tweet Mikey @themarketshadow with questions or ideas

Thursday, February 25, 2010

IMF to sell 191.3 metric tons of Gold

IMF to Start Sales of 191.3 Metric Tons of Gold

The International Monetary Fund on Wednesday said it will shortly begin selling 191.3 metric tons of gold in the open market under a program launched last year to boost its resources.


To avoid disruptions of the gold market, the IMF said the sales "will be conducted in a phased manner over time." The fund kept open the possibility that central banks could still purchase some of the gold directly.

The IMF announced last year it would sell a total of 403.3 metric tons of gold, about one-eighth of its total stock, to diversify its sources of income and increase low-cost lending to poor countries.


Until now, the gold has only been made available to central banks. So far, India — the world's biggest consumer of gold — Mauritius and Sri Lanka have purchased a total of 212 metric tons of gold from the IMF.

India's central bank was the biggest purchaser, snapping up 200 metric tons of the IMF gold over a period of two weeks in October, increasing its gold holdings to the tenth largest among central banks.

The IMF said central banks could continue to buy the gold, which would reduce the amount of gold available for sale on the open market.

"The initiation of on-market sales does not preclude further off-market gold sales directly to interested central banks or other official holders," the IMF said in a statement.

The report today says China will buy the IMF auction. All I can say is they better because no one else has the money to do it. Today NEM announced great earnings and on Tuesday Cramer had the CEO of AEM on his show. Nicely done. Gold is rallying today right when the players were looking for a breakdown. Last chance to buy ..here fishy fishy

The ballgame is at 1060 as you can see by the chart below. The MACD is back up to the zero line for the second time. Below 1060 Gold is finished




The GDX is forming a nice head and shoulders pattern. The left shoulder between 43 and 50 in Sept and Oct the head between 50 and 55 in Nov and early Dec and the right shoulder and the right shoulder between 43 and 50 from early Jan to present. The neck line is at 42/43.

I would like to note that just as Gold reaches a critical point in the charts that Gold miners AEM and NEM announced their "great earnings and appeared on CNBC. The CEO of AEM is Cramer's buddy and appeared on his show.

NEM..The MACD is back up to the zero line. NEM announced earnings on 2/24 and is teading at 48.89 near the top of its short term trading range of 50



Notice the insider sales from November to present:




AEM..Acting weaker and a beautiful Head and shoulders formation The MACD is back up to zero. Eanings were re;eased 2/17 and the stock tradeed to the top of its current trading range at 61.50. The stock is now trading at 57.29




The earnings were touted as great and of course "the Fed is printing all that money" but look at the charts they are telling a different story. The high on AEM was 74 and now it is 57. The high on NEM was 56 and it is now 49. The miners and Gold bugs are circling the wagons now and it would not surprise me to see a merger or buy out just to put a high "value" on the group.

Keep an eye on 1060 and GDX below 43 that in my mind is the game




Here is a monthly chart of Gold. The target is the beginning of the move in Sept 2005at 454.




Mikey
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)