Good Morning, lets get started

Posted on December 12, 2005 , filed under Stocks | Print This Post

Today will be a tricky one. I was up last night doing more research on gold stocks. Gold was trading at $535 in the early morning and it looks like the metal shows no signs of a pullback yet. It looks like the place to be at the moment is gold and not the broader market. It’s interesting watching what I believe is the beginning of a gold mania and third phase of a bull run. If gold breaks new highs, I will purchase 5,000 shares of AUY, Yamana Gold Inc. today. I may consider day trading AUY for a rapid profit. A great way to monitor the performance of gold mining stocks is to track, HUI, the AMEX Gold BUGS, Basket of Unhedged Gold Stocks, Index. Here is a good description, current makeup and history of the Gold BUGS Index. If you compare Friday’s performance of HUI and AUY you will see that they moved with similar patterns, except AUY moved downward more aggressively. AUY is more volatile than the stocks that make up the Amex Gold BUGS Index. I need a website that can provide good custom sized charts with side by side comparisons of two stocks. I can fit a maximum of 450 pixels in the post area of the blog. Does anyone know a website that has this functionality? Please E-mail me.

There’s a lot of action this morning on Raw Greed. I’ve got some speculative plays in the textile industry, UARM, Under Armour, Inc., DECK, Deckers Outdoor Corporation and TRLG, True Religion Apparel, Inc., that I am watching. All three of the mentioned stocks have been trading heavily on speculation. I will report back with an analysis.

Add this post to your favorite social networking site