Last Sunday, January 24th I recommended $ABX. It opened last Monday at $8.74 and is now at $10.01. It is higher by $1.27 or 11.21%. We locked in 50% of the position at $9.72 and will lock in the rest here. Anytime we make such “fast money” it makes sense to take some of the profits.
Gold looks a little toppy to me right here and with the awful PMI numbers we could see it pull back. Also, at 1:00 p.m. Federal Reserve Chairman Stanley Fischer will be jaw boning rates and that could hurt gold stocks.
Expect to see a new recommendation out this week as we have lots of ideas but want to see how the week plays out given the abundance of news.
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Your Analysis is lacking. The focus right now is on China. Chinese New Year normally brings a huge demand for the gold stuff and with Yuan Dropping and USD hard to get. Gold is the play there. Also did you notice that the Shanghai Gold Exchange has stopped releasing Vault data. The Markit PMI data was very close to Flash Data so not that much of a factor. Fischer is a little hawkish and with the Fed Futures not expecting anything or only one, not a factor either.
Good post Divergence Convergence – Can’t say I’ve had any complaints. I care about accuracy and the ABX call was spot on.
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Pro, It was too soon an exit on ABX, yep a tad weaker today on a stronger Euro, but that is short lived. Gold rally has legs imho.