Gold continues to firm, up another USD 10 last night, and since there doesn't seem to be the bullishness around that was apparent a couple of months ago, the stocks are also firming. I understand that a lot of funds are quite heavily weighted to gold already so this could be just a retracement rally and the chart of Spot Gold doesn't rule out the possibility. It was a longer, more complex pullback than you would expect if you were looking for a new high so maybe this will fail below USD 1265.
Despite that, I think there are some opportunities because the stocks have lagged the gold price in some instances. I featured Sbm a little over a week ago, but it's one of the laggards. I'm still long and I bought more yesterday at 29.5 and a few more on the open today at 30.
I'm fiddling around with the font today because I'm using the Firefox browser today and the other font looks strange. Bear with me.
2.35 I've experimented with Firefox and Chrome and I can't get the fonts to look right. Pretty strange that Chrome doesn't work well since I'm using a google blogging product. Anyway, back to internet explorer.
The market is up 33 points now and I'm still not ready to put on short positions.
I've just looked at the 60 minute chart of the Dow Jones which looks pretty bullish for tonight so I'm comfortable to wait. Here's the chart.
2.53 I've added a new long given that I now think the US indices will give us a little boost in the morning. It's in Awe and although it's quite possible that this is a stock in a slow turnaround which has already had it's a-b-c rally, I've still bought at 166.5 because I'm happy to have a tight stop around 160 and I think there's more chance that it's ready to extend the rally with an acceleration up. The reason I think that is because the recent bounces have been impulsive while the pullbacks - even in last week's soft market - are fairly mild.
4.11 A late sell off has pared the gains, up 39 points. The advances were across the board but financials did best.
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