6/29/2008 12:06:19 PM
Precious Metals are on the Move. I recognized the up move coming by looking at the relative strength of Palladium compared to Gold and Silver. When Palladium broke out last week, I said all systems were a go for PAL. Just a couple of problems with this recommendation. Somehow PAL showed up in my database as an ETF. It is Not ! It is an individual stock subject to it's own good points and bad regardless of a move in Palladium. I still feel that it is ready to move up. We will hang on to it for now because it gives us our only position in the precious metals, but if we can leg out of it, and into a Gold or Silver ETF, we will. Also, even though Palladium signaled the turn in the metals, Gold and Silver stormed out of the gate first. We need to find a way to safely buy an ETF in those metals.
Trade Actions:
Buy GLD ( Street TRACKS Gold ) at 90 or better
Buy GDX ( Market Vectors Gold Miners ) at 46 or better
Buy DGL ( Powershares Gold ) at 33.5 or better
Buy SLV ( I Shares Silver Trust ) at 170 or better
Buy DBS ( Powershare Silver ) at 31.5 or better
Buy DBP ( Powershares Precious Metals ) at 33.5 or better
IF you get filled on 2 of these positions, Cancel the other orders. If you want to maintain more, go ahead. We will only track the first 2 fills if we get them. If the metals market runs away without us getting filled, I will be comfortable with PAL as a substitute.
Market Outlook/Potential Opportunities:
The US Stock Market is in its down leg. It did not give us a good rally to sell into. We do have a couple of Short positions, so we are sitting pretty well. Plus we have a few inflation hedges on. We will stay the course for now. There might be some backing and filling to the upside, but I believe the Stock Market is in trouble. Still there are pockets of strength, We are long FBT Biotech and I believe it will be a survivor in this environment. We also are trying to set up more Short positions. We did get a decent entry on the Ultrashort SRS and we doing real well on it. We are also short REM, so we have ( 2 ) short Real Estate positions on.
Current Long Portfolio:
Long CGW Global Water @ 25.55 | It closed at 23.30 | No Stop |
Long ( 4 ) PAL Palladium Fund @ 5.97 | It closed at 5.59 | 4.75 |
Long SRS Ultrashort Real Estate @ 84.80 | It closed at 104.9 | No Stop |
Long NLR Nuclear Energy @ 32.59 | It closed at 33.90 | No Stop |
Long FUE Elements BioFuel @ 10.0 | It closed at 11.65 | No Stop |
Long FBT Biotech @ 23.2 | It closed at 22.45 | No Stop |
Bought COW Livestock @ 44 | It closed at 44.28 | No Stop |
Current Short Portfolio:
REM Mortgage Real Estate Investments Trust @25.2 | It closed at 20.84 | No Stop |
Recently Closed Positions
