Indeed, gold stocks ARE riskier than either the stock market as a whole or gold bullion. Risk is defined as THE measure of volatility in any market. >>
Thanks Jmski52 for that link. JS Kim is quite the gold bull and a fellow conspiracy theorist.
One thing that chart does show is a nice 5 wave pattern up in gold stocks. This is a major reason why they've behaved so badly the past 1-2 yrs as they are reverting back towards a mean level. Some of my favorite juniors have been so pummeled into the ground you really couldn't take them any lower. Jaguar for one (JAG) was about as beat up as a producer could go. With a 25% move today, and 77% since the Dec lows, it was a good time to take some off the table. Miners can work well for you if you buy them on the washouts when the weekly indicators fully bottom out.
Not much to talk about with this sideways movement.
As far as the SPX goes, McLellan has some indicators that were predicting a big drop in Jan but looks like that's not going to happen - or it's going to be late. PErhaps all of the QE is wrecking the relationships he relies on.
As a side note - I believe I mentioned it back in Oct/early Nov. I sold 80% of my stock positions which was mostly mining & energy stocks. Turns out that saved me a bundle. Too bad I wasn't prescient enough to put it all in FB.
<< <i>Not much to talk about with this sideways movement.
As far as the SPX goes, McLellan has some indicators that were predicting a big drop in Jan but looks like that's not going to happen - or it's going to be late. PErhaps all of the QE is wrecking the relationships he relies on.
As a side note - I believe I mentioned it back in Oct/early Nov. I sold 80% of my stock positions which was mostly mining & energy stocks. Turns out that saved me a bundle. Too bad I wasn't prescient enough to put it all in FB. >>
Whats interesting is that a few months ago was talk of FB going to single digits and mining stocks going higher. Investor psychology is always more important than fundamentals.
Comments
Indeed, gold stocks ARE riskier than either the stock market as a whole or gold bullion. Risk is defined as THE measure of volatility in any market.
I knew it would happen.
<< <i>For roadrunner - a great chart that clearly shows the riskiness of gold stocks vs. the stock market and vs. gold bullion.
Indeed, gold stocks ARE riskier than either the stock market as a whole or gold bullion. Risk is defined as THE measure of volatility in any market. >>
Thanks Jmski52 for that link. JS Kim is quite the gold bull and a fellow conspiracy theorist.
One thing that chart does show is a nice 5 wave pattern up in gold stocks. This is a major reason why they've behaved so badly the past 1-2 yrs as they are reverting back towards
a mean level. Some of my favorite juniors have been so pummeled into the ground you really couldn't take them any lower. Jaguar for one (JAG) was about as beat up as a producer
could go. With a 25% move today, and 77% since the Dec lows, it was a good time to take some off the table. Miners can work well for you if you buy them on the washouts when
the weekly indicators fully bottom out.
Knowledge is the enemy of fear
As far as the SPX goes, McLellan has some indicators that were predicting a big drop in Jan but looks like that's not going to happen - or it's going to be late. PErhaps all of the QE is wrecking the relationships he relies on.
As a side note - I believe I mentioned it back in Oct/early Nov. I sold 80% of my stock positions which was mostly mining & energy stocks. Turns out that saved me a bundle. Too bad I wasn't prescient enough to put it all in FB.
<< <i>Not much to talk about with this sideways movement.
As far as the SPX goes, McLellan has some indicators that were predicting a big drop in Jan but looks like that's not going to happen - or it's going to be late. PErhaps all of the QE is wrecking the relationships he relies on.
As a side note - I believe I mentioned it back in Oct/early Nov. I sold 80% of my stock positions which was mostly mining & energy stocks. Turns out that saved me a bundle. Too bad I wasn't prescient enough to put it all in FB. >>
Whats interesting is that a few months ago was talk of FB going to single digits and mining stocks going higher. Investor psychology is always more important than fundamentals.
Knowledge is the enemy of fear