10 Gold stocks on fire or almost

[la-onda]

thanks for the update & comments metro 

[metro]

The US$ fell so gold rallied. The futures were right at the lower Bollinger bands and at a 3-month trend line so the perfect place for a move up.

All of the 10 stocks here had nice moves - days like these are at least good for short term trading - will wait to see if the break out holds to see for longer term.




an example of one break out is GRS




And BGO may try for  a break out



I keep my favorites on one tradoing page so that when gold rallies I can get a basket of them and then add to the strongest ones

and EGO still in its channel so some can be kept with stop below channel and some can be traded with the swings.

[stout7735]

I am not a gold bug,although I bought   a sizable(for me) position in VGPMX on 9/3/98 and held it since, as my WWIII investment...I am looking at GRS as a separate stock to hold at least a year for the following reasons:
Production starting within 6 months
Rich(and relatively cheaply extractable) reserves of gold and silver
Fairly stable government
Gold going above $ 475
Takeover target at a high price

Do you guys expect a price at or above $16.00 in a year??

[metro]

Gold Stocks revisited 


Gold stocks have had some very nice moves and a lot of break outs and it looks like time to stay long...will know better in a few days as it would be good to see how they perform on a first pullback as many of the stocks are overbought short term.

The NASDAQ and DOW are likely to have a decent pullback in the next couple of months and if that happens, often very speculative stocks that have been doing so well can fall rather quickly. If this happens there may also be a move into gold for "security"

The Fed meeting may effect how gold performs so pay attention as that comes next week.


First note three of the gold stock indexes and the break outs

GDM 

XAU       

HUI   

Then more importantly note how the weekly chart of this HUI to Gold ratio chart below has made a break out. This chart shows when gold stocks are outperforming gold itself so when it is going up you want to be in gold stocks. This is a longer term buy signal and could mean many months of moves in the gold stocks.

As long s this chart remains bullish then gold stocks can be held and added to on pullbacks. In the past when a bull gold trend took charge many of the stock doubled or more over the next 6 months or so and it will happen again but we can not be sure it starts now but it is looking good so far. Note how the moving average shown acted as support the last time the chart was going up - this shouldl also happen this time so you can use that indicator as a mental stop.



HUI to Gold Weekly


You should be aware of the US$ as it still has a relationship to gold so if the dollar rallies then gold usually falls. The US$ is right now at the top of its channel and it could of course break out which could stop the gold rally for a time. Just be aware of this as if it heads back down again then gold stocks should continue to move up.

US Dollar   

Here are the HUI and XAU weekly ration charts so you see one has broken up and the other not yet so we would like to see both above soon. These possible bull flags have been forming for  two years so a break out here can move a lot and for a long time.










Now a look at some of the stocks of interest and decide which type you like as there are many nice charts.



PMU   


IAG       

 
MNG 


BGO     




SIL   this is a silver stock and silver has not been doing well but this stock has.




AUY     



VGZ     


DROOY     



EGO         



KGC             


CLG   


GFI 


USGL 



Also this is a palladium stock with a break out point shown as it is also above the 200 day EMA so probably a nice place to get in as it breaks with volume.

SWC - palladium   

[metro]

The thread is here:

http://www.3stocksonfire.org/trading/index.php?topic=2215.new#new

I am noting it here also as this may be the start of a longer term move in gold stocks. It may take another few days to confirm this and watch how they do on pullbacks but if the down trend is broken now then the new trend could last for many months so worth checking.

[shareholder]

So many nice looking charts I bought several and they all went up -- thanks looks like some need to pull back a bit now

[metro]

This little one had a super move. Tried a break out 2 days ago and failed - then pulled back to 9-day and then super break out on nice vol. It is typical that the major ones like NEM make moves then the smaller ones but the smaller ones often make big % gains. AUY DROOY PMU all did well so now a pullback on some should take place.

[Se7en]

David is gonna buy DROOY.

[metro]

I left these one off - they are low vol stocks but at trend lines with increasing volume





You can buy a basket and sell parts off as they get over bought

[metro]

amazing day - I have 69 gold/silver/palladium stocks on my screen and 66 were up today USGL the best with 17% but all good. It is best to buy break outs of trend lines or horizontal on heavy volume or pullbacks in most cases as extended gold stocks generally do not keep going as often as say a penny stock might. There is and will be a lot of hype about buying gold stocks now for a while and on pullback days when people forget or think the "fad" is done will be times for nice buys.

[stout7735]

I am not a gold bug,although I bought   a sizable(for me) position in VGPMX  on 9/3/98 and held it since, as my WWIII investment...I am looking at GRS as a separate stock to hold at least a year for the following reasons:
Production starting within 6 months
Rich(and relatively cheaply extractable) reserves of gold and silver
Fairly stable government
Gold going above $ 475
Takeover target at a high price

Do you guys expect a price at or above $16.00 in a year??

Hecla Mining (HL) began to follow the price of gold mining companies on friday...Market Watch stated silver prices may  go as high as $50 per ounce(relatively more %  than gold)...
GRS will produce primarily silver like Hecla,but has  much richer veins....What do you gold bugs think a good entry price for GRS is?

[metro]

Stout  - on GRS the chart shows a clear trend line and support near the 9-day EMA so pullback to there seem  good.




And HL broke out of its trading channel on very strong volume as silver is perking up. Many new break outs and some are over bought short term but can be bought on pullbacks for what appears now as a long term rally.

[metro]

RANGE broke out on the horizontal and trend line today - very bullish




and SMXMF penny stock gold broke trend

[stout7735]

Metro,
Thank you for your expert advise...I began buying GRS today...

[metro]

Gold stocks generally do not act like "regular" stocks. Many stocks are good to buy on break outs with high volume and run them for a a nice trend but gold stocks are usually better ones to buy on weakness - on pullbacks then sell on days like this. I mentioned shorting HMY today in pre market and the stock looked great but too many gaps ups. As long as the gold ratio charts remain positive though the gold stocks will be ok and have some nice moves so it is not bad to hold - just have to wait during retraces. Many people like to buy a position and sell some of it after big rallies then keep part and then buy the other part back on pullbacks.

Also if buying a pullback and you do not want to wait for a "known" support then you can buy a partial position and add to it if the stock pulls back more of if it bounces.

If gold acts like it looks like then this rally will last for months so plenty of opportunities. Gold stock are not good ones to chase.