Happy Days for Gold?
Source: Seeking Alpha, Jeff Pierce (1/25/09)
"Gold was in the spotlight on Friday in a big way, nearly moving $39."
So the answers to the previous questions I believe are yes, yes, and no.
I'm a big fan of gold for a number of reasons (fundamental, technical, historical) but I know from experience that it trades much different from a momentum point of view. Just when it looks like gold is going to bust out and move to blue skies it seems to run out of buyers and reverses.
We could possibly move up to the 92 level before profit taking hits, but I just don't see a good entry at this point if you're not already invested in these stocks. It would be more prudent to wait for a slight low volume pullback before entering. The only problem with this way of thinking is there could possibly be many with this outlook, and that could actually propel gold to higher levels; but I'm willing to risk that because if it does move up even more, then that will confirm the strength and I'll buy even more on the eventual dip. If you are long from lower levels I would consider taking some profits off the table now to prevent yourself from giving up any of your gains.
"I made all my money selling too soon." –JP Morgan