GOLD Divergence

Posted by downtowntrader | 3/02/2006 10:52:00 AM | 1 comments »

Gold has been going up and most gold stocks have been falling. I'm not sure why this is happening, but I don't expect it to continue. Looking at the past divergences haven't lasted too long, so I expect either gold stocks to turn up, or a deeper correction in gold to occur. For now, I 'm playing for gold stocks to turn up.
Here is my gold stock of choice. They are the only one that has been going up steadily with gold. I believe the reason for this is Goldcorp's exposure to silver with the stake in SLW (my favored silver play along with svm.to).
Here is NEM's chart, and you can clearly see it pulling back. Looks like we have a possible bounce point here, or if it breaks a little further below.

Good Luck,

DT

1 comments

  1. Anonymous // 3:44 PM  

    Excellent Call DT!

    Much better than scalping, which is what I did all day.

    Nice work.