Watching the activities of the XAU, gold and silver are important IMVHO. They are really going after gold here....I believe France and other CBs are selling.
I am flattening out today and taking some profits....including energy as the OSX is right off its ATH. I can always buy back. It's been a good run. Sold a chunk of uranium stocks, too.
Gold Under Attack
Started by
Cirrus
, Apr 26 2007 09:13 AM
5 replies to this topic
#2
hiker
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Posted 26 April 2007 - 09:22 AM
USEG is the only US symbol that is green today in uraniums.
#3
Cirrus
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Posted 26 April 2007 - 10:02 AM
The XAU to gold ratio is nearing a historical buy signal. Typically, we get a really nasty selloff in the XAU as the ratio pegs above 5. I read some stuff over the last couple of days about the selloff in gold.
One more thing...which may correspond to airedale's ST cycle low due soon. The Fed and FCB liquidity signals are flashing IT sell signals (on W.S.E). There so much liquidity out there it may not matter. However, some commodities are nearing runaway mode again--especially industrial metals. Perhaps it's time for a ST liquidity squeeze to 'ease' commodity market pressures.
#4
TechSkeptic
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Posted 26 April 2007 - 11:46 AM
Uranium selling off in sympathy with other metals, which are selling off on dollar strength. Could be a good buying opp for the U-sector, though of course always risky to try to catch falling knife.
#5
Cirrus
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Posted 26 April 2007 - 12:24 PM
I still think there will be a similarity with 1998 and 1987 this year. It will rhyme. The dollar was in a free fall prior to the 1987 crash, too.
I'm not calling for a crash--more like a mini melt-down that corrects 10-20% over a relatively short time frame. That should allow the Fed to battle off commodities ST. I don't know when or even if. It's just a gut feel I have. I'm still trading off the charts but IMO the risk levels for investors are a lot higher than they think.
#6
beta
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Posted 26 April 2007 - 01:47 PM
I still think there will be a similarity with 1998 and 1987 this year. It will rhyme. The dollar was in a free fall prior to the 1987 crash, too.
I'm not calling for a crash--more like a mini melt-down that corrects 10-20% over a relatively short time frame. That should allow the Fed to battle off commodities ST. I don't know when or even if. It's just a gut feel I have. I'm still trading off the charts but IMO the risk levels for investors are a lot higher than they think.
Very well-stated, Cirrus. I agree that something about this picture just doesnt "make sense."
My indicators stopped working around SPX 1460, so Im staying out for now.
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