Morning Report Monday 20 July 2015
Gold and Respective Stocks are Becoming Very Exciting!
As subscribers know, when markets get close to our action levels, we focus very closely on a particular index, sector or stock and in today’s case, it’s the gold sector. Last Friday, we started looking at gold and related stocks, plus we initiated a trade in Regis Resources (RRL). Unfortunately, due to some very positive corporate news on Friday morning RRL exploded from the opening , closing 26% higher on the day – our trade location was average, BUT we are still ahead, almost 8% basis Friday’s close, with an ultimate target ~$2 which is over 35% higher – see chart 2. Having spent the weekend in the Blue Mountains and witnessing snow, it crossed my mind that as investors, we should never be surprised by the market like the weather, simply remain open market to any eventualities. We are watching very closely for a reversal in gold, which may be very dramatic as “short positions” in gold at all time highs with investors / traders all aboard the same train of a strong $US and hence weak gold price…this move we believe is very mature in the medium term.
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