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Trading Style Discussion & Silver Wheaton: The Best Silver Play in Town

My trading style is a work in progress that continues to evolve over time.  As I discover a weaknesses, I put strategies in place to address the issues.  The following is a problem that would drive me nuts.  After I would sell a stock and move on to the next hot one, unintentionally I would forget about the one just sold.  At some point in the future, I would check its price.  Often it would be higher, sometimes much higher than the price it had been sold.   Some would say that I should not have sold it in the first place.  Maybe I shouldn’t have.  Maybe I should have.  I believe that the mistake was not in selling the stock, but in not buying it back. 

I didn’t buy it back, because maybe it was a health care stock and now I am into consumer stocks or maybe it was a large cap and now I am into small caps.  There are literally thousands of stocks available and it is very easy to get distracted.  To address this issue, I have reduced my stock universe to around 30 stocks.  Occasionally a new one will be added and an old one will get the boot.  Some of the stocks I trade as a basket, so in reality my universe is probably closer to 15 stocks.  I have also narrowed my focus to primarily commodity stocks and a couple of tech ETFs.  This has many benefits, but mostly it allows me to really learn a sector and how it trades.  It also reduces the probability of missing a run in a stock that was recently sold.  Continue reading “Trading Style Discussion & Silver Wheaton: The Best Silver Play in Town”

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Bernanke Passes The Buck

If you don’t know – Gold and the US Dollar are inversely correlated.  As the dollar strengthens, the price of gold declines. As the dollar weakens, the price of gold increases.  Paul van Eeden explains the reasoning for this far better than I can, so refer his article Understanding the Gold Price.

Now while reading the article below recall the relationship between the dollar and gold.  When you finish reading it, it should be apparent why investing gold will pay great rewards over the next 10 years.

Many people will make money investing in gold, but only a few will get to keep it.  That’s just the way bull markets work.  In order to be one of the fortunate few, you will need to have a plan.  Re-read the articles on dollar cost averaging – this strategy should be the foundation of any plan.

 

Source: Kito Casey
by Axel Merk

In a speech at the Economics Club in Washington, Federal Reserve (Fed) Chairman Ben Bernanke warned America to save more and spend less to preserve our standard of living for the long-term. The core of his message that we must improve fiscal discipline and the quality of our education is not new; his advice will also be applicable as long as we have politicians and schools. The speech is more striking for what was not mentioned – namely the Fed’s role in this process.

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Smell of Fear Hits Gold

The pounding of the commodity patch continues.  At least gas prices are down, that should put an extra $50 a month in your pocket – WooHoo!!!  Just for the record that is a very sarcastic WooHoo….

 

Source: The Street . Com
by Simon Constable

Gold took a beating Tuesday as lack of physical buying and weakness in crude prices proved too much for metal traders to bear.  Not even a threat of nuclear tests by North Korea could help boost demand for the metal as a safe haven in times of geopolitical uncertainty.

December bullion futures closed down $21.80 at $581.50 an ounce on the Comex division of the New York Mercantile Exchange, and the bullion exchange-traded funds, GLD and IAU also weakened, each down about 3.3%. 

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Commodity Bust = Buying Opportunity?

Source: Financial Sense Online
by George Kleinman

A number of Wall Street firms say the commodities boom is over. Gold, for example, fell to a 13-week low last week. Crude oil dropped to its lowest point this year on Friday. Stephen Roach, chief global economist at Morgan Stanley, the world’s biggest securities firm, has been quoted as saying, “The mega-run for commodities has run its course.” On the other hand, Jim Rogers, who has made a fortune in commodities, says the commodity bull market is a long-term phenomenon with another 10 years to run.

Who’s right? 

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Gold In A Free Fall

The previous article said that commodities are simply experiencing a normal pull back in a bull market.  In this article, Jack Chan is not so sure.  The commodites market has us just where it wants us – confused.  Jack is one of the best.  I have subscribed to his service for a couple of years.

 

Source: Gold Eagle
by Jack Chan

The advantage of just focusing on a few sectors have allowed me to stay very close to the markets and price action. Trading and investing is an ongoing learning experience, the more we see, the more we learn. I’ve been criticized recently by some due to the few whipsaws we have taken this summer. I offer no apologies for that, because I have warned many times that whipsaws could happen while prices are in a consolidation process until a new trend is established. It’s the cost of doing business. That consolidation is now over as prices have broken down.

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