Source:ME As you can see gold is in a bullish wedge while the stocks have diverged downward - if Gold breaks to the upside, the premature selloff in aussie gold stocks will reverse and start heading back to a correlation. The potential is huge - IF gold breaks to the upside The other potential is that Gold will come down to correlate with the gold stocks
What I would like to see 1. Gold breaks to the upside 2. XGD reverses with high volume 3. Gold resumes a slow uptrend 4. XGD break upper trend resistance What might happen 1. Gold breaks downward 2. XGD continuing downward trend (i believe a break down in Gold is largely priced in) 3. Earning reports for the quarter come in (considering a 20% discount in energy costs ie oil at $80, I see producers exceeding forcasts) stimulating a buy in the Gold Stocks 4. Would need a stimulus for Gold to sustain
5000 to invest , wondering if it should put it in FML or NCM.... Decisions , Decisions... It is certainly a good time to buy looking at the prices of the PM stocks right now
I tend to think NCM has some more downside similar to the price during the lehman collapse. I'm waiting for a little more down moves before i look at NCM. Of course if QE3 is announced tomorrow i would move into NCM right away
I hate FML - i think ive said that before on this sight I would never own it unless it sorted out its sharestructure
