heads up on gold - from sinclair

  1. dub
    29,583 Posts.
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    Hi,

    FWIW, here's latest advice from Sinclair - just out.

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    Subject:
    HEADS UP - Expect the Unexpected


    Heads Up
    "Expect the Unexpected"

    Use Stop Buy Orders
    Christmas to New Years
    In Order To To Protect Yourself from
    Standing on the Station as the Gold Train Pulls Out


    This is a short Christmas to New Year's message. Gold in the last US session made a second touch on the $348 resistance level. We have new interests in gold as the Chinese have been much larger buyers at the retail level than expected plus the US dollar declined below the important 104 USDX level.

    Reports of weak consumer retail buying for the Holidays is not going to make the US economy looks like the engine of economic recovery required to support the dollar and continue the equity rally.

    It is therefore possible for gold which should be in reaction for five more trading days to challenge and possibly better the $354.50 level sooner than expected.

    I therefore suggest you place "stop buys" in the gold shares which you sold at either of two levels.

    At that level where you sold as a "stop buy" to replace the position.

    At a new recovery high close as a market order versus that close. That is called a "stop-buy-close-only."

    A close of gold above $354.50 will take gold to $372.00.

    Gold will trade above $400 in 2003, IMO. This is, IMO, a long term bull market in gold which is not a cyclical event, but rather a generational event.

    Please keep in mind for those interested in trading the general equities on the short side that a close of the Dow Jones Industrial Index below 8350 would finish the rally.

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    bye.dub





 
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