International Markets on a Big Run
The DJI bull market was confirmed yesterday by S&P 500 and the Transportations. Virtually all international general markets are running very hot. Though the markets appear to be overbought by most standards, they continue to achieve loftier heights. There is money to be made, but one must play it very carefully. Beware that though this trend may well continue longer, the third phase; that is, the BLOW OFF, is waiting in the wings for its on stage cue. It is this phase in which one must rapidly sell before the following fall.
The boom in the markets and the renewed weakness in the dollar, has given us a strong up move in the precious metals. We are approaching the summer which historically gives us weakness in the precious metals which often spills over into the mining stocks which is a detraction from the current strength. Even so, mining stocks are moving into nice territory this morning with a substantial recovery from the lower prices of the last several days.
Gold is up to $667.30 and silver is at $13.54. Not the prices we should expect, but nice upward movement. Gold did not test its support at $640 on this last step down. Were it to go below $640, there would be heavy selling and a wonderful buying opportunity for us. I am not a seller of gold, and would enjoy adding on drops. The mining stocks on the other hand, provide an opportunity for trading if one is nimble in the market.
Please, keep trailing stops on a portion of your mining stock portfolio. (You will recall that trailing stop sell orders are those that establish a price gap or percentage of price that the stock must fall before the order is executed. If the stock drops by that amount or percentage, it is sold at the then prevailing market price.) I use the percentage trailing stop sells, but never sell all until the third phase arrives. That's when all the late comers climb on board as if it were the last life boat from a sinking ship. They will pay any price to climb aboard. That is the ideal time to sell and look for other assets to purchase for the dollars.
As always, remember that it is the Lord, Himself, who acts out His Sovereign will is all activities of man. It is He who gives us wealth. It is also He who demands only a tithe (about 10%) which must be returned to Him. He trusts each of us with the wealth suitable for us. The one place in Scripture which encourages us to test the Lord is found in Malachi Chapter 3. After accusing the people of robbing Him, by not paying their tithes and offerings, He says in Verse 10, "Bring ye all the tithe into the storehouse (now, the church), that there may be meat in mine house, and prove me (or test me) now herewith, saith the Lord of hosts, if I will not open you the windows of heaven, and poor you out a blessing, that there shall not be room enough to receive it." That is a great promise, but do not expect blessings unless, you follow your part of the test and stop robbing God of His due. Also, the promised blessings may come in many forms; such as, godly children, health, peace, security, and others, besides simply wealth.
He has created us and we are His. He entrusts wealth to those He equips to use it wisely. Whatever wealth, He provides, we must be good stewards thereof. We must be profitable servants of the Sovereign God of all, who loves His people with a perfect love. This love, we are called to reflect to all those with whom we come in contact.
Best to each, Doug
The boom in the markets and the renewed weakness in the dollar, has given us a strong up move in the precious metals. We are approaching the summer which historically gives us weakness in the precious metals which often spills over into the mining stocks which is a detraction from the current strength. Even so, mining stocks are moving into nice territory this morning with a substantial recovery from the lower prices of the last several days.
Gold is up to $667.30 and silver is at $13.54. Not the prices we should expect, but nice upward movement. Gold did not test its support at $640 on this last step down. Were it to go below $640, there would be heavy selling and a wonderful buying opportunity for us. I am not a seller of gold, and would enjoy adding on drops. The mining stocks on the other hand, provide an opportunity for trading if one is nimble in the market.
Please, keep trailing stops on a portion of your mining stock portfolio. (You will recall that trailing stop sell orders are those that establish a price gap or percentage of price that the stock must fall before the order is executed. If the stock drops by that amount or percentage, it is sold at the then prevailing market price.) I use the percentage trailing stop sells, but never sell all until the third phase arrives. That's when all the late comers climb on board as if it were the last life boat from a sinking ship. They will pay any price to climb aboard. That is the ideal time to sell and look for other assets to purchase for the dollars.
As always, remember that it is the Lord, Himself, who acts out His Sovereign will is all activities of man. It is He who gives us wealth. It is also He who demands only a tithe (about 10%) which must be returned to Him. He trusts each of us with the wealth suitable for us. The one place in Scripture which encourages us to test the Lord is found in Malachi Chapter 3. After accusing the people of robbing Him, by not paying their tithes and offerings, He says in Verse 10, "Bring ye all the tithe into the storehouse (now, the church), that there may be meat in mine house, and prove me (or test me) now herewith, saith the Lord of hosts, if I will not open you the windows of heaven, and poor you out a blessing, that there shall not be room enough to receive it." That is a great promise, but do not expect blessings unless, you follow your part of the test and stop robbing God of His due. Also, the promised blessings may come in many forms; such as, godly children, health, peace, security, and others, besides simply wealth.
He has created us and we are His. He entrusts wealth to those He equips to use it wisely. Whatever wealth, He provides, we must be good stewards thereof. We must be profitable servants of the Sovereign God of all, who loves His people with a perfect love. This love, we are called to reflect to all those with whom we come in contact.
Best to each, Doug
posted by Doug @ 9:47 AM
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