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Friday, December 18, 2009

Time to buy Gold Miners?,,,,Again?

REMINDER: Saturday is once again options expiration. Expect market games between Friday and Tuesday noon.

Thursday the Gold Miner ETF, GDX, has hit the long term bull tend line. If you are in the camp the US dollar is about to implode any day now, and Gold is the only "real" money, now isn't a bad time. You could buy GDX at this level, and set a stop-loss point at around 44.

However, for me, I can't do it. From a charting perspective, seems like a decent play with a set risk threshold. My problem is the stock market I still believe will correct. And I can't see how gold miners explode higher if the market is falling.

Oh yea, there is also the US dollar. As the USD gets stronger, I have a hard time seeing gold explode higher. It can, there is no tie between the two. But it is an uphill battle.

From WebSufinMurfs FinancialBlog2

From WebSufinMurfs FinancialBlog2

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