What a week!
There is a great deal of turmoil in the market these days. The volatility is very exciting. The general market both here and abroad, typified by the Dow Jones Industrials, may have entered the early days of the third wave of the bull market. Virtually all of the markets are indicating a strong upward move. The gut wrenching pull backs may be simply temporary corrections on the upward move. Each must be examined to determine if is to extend or just a temporary blip on the way to higher prices.
The third wave culminates in an extreme blow off where "everyone" crowds to get in on the perceived profits. Then there is a crash which is very real and billions are lost over a relatively short span of time. That is when brokers receive call after call with investors saying, "Cash me in for whatever you can get." This could be, but not necessarily is the third wave. The market will tell us over time. Such waves provide opportunity for great profit during the early stages.
The DJI were up well over 100 points early, but as of now, the Dow is up only 72.43. Gold has followed the general market and is up 672.50 now. Silver is up to 11.98. It seems somewhat unusual for the precious metals to move in concert with the general market. However, we must remember that when there is a significant correction in the general market, those trading on margin accounts must liquidate to cover actual and potential margin calls. Thus, they begin to sell everything. The mining stocks generally are the first to be sold and the prices are depressed. They will rebound as the market moves up and investors see the "bargain" prices of the mining stocks.
The Exchange Traded Fund (ETF) for gold trading under the symbol GLD is a convenient way to own the metal. The Canadian Central Fund (CEF) holds both gold and silver. Next to owning and possessing the metals themselves these are two of my favorites. I also like www.Everbank.com Metal Select Accounts and www.goldmoney.com accounts which enable you to own either gold or silver without taking physical possession.
I have been buying more of the CEF as the cost was less just over $9.00. I am continuing to hold the mining stocks even though the prices are somewhat depressed. You might want to place trailing stops on some of your mining stocks. I use these from time to time, but not on all my holdings.
Any escalation of the mid-East war situation would cause the price of precious metals and oil to jump significantly. The Iran confrontation appears to have cooled some, but could explode over night. In fact, it seems a bit too quiet at present making one wonder what is cooking. Also, it seems strange that there have not been more attacks outside of the mid-East area in recent times. That also seems strange.
I am just so pleased that all is in the hands of a Sovereign God Who loves and cares for His people and their eventual well being. If you are resting in His hands and working for the spread of His kingdom, you are one of His and under His protection.
Best to each, Doug
The third wave culminates in an extreme blow off where "everyone" crowds to get in on the perceived profits. Then there is a crash which is very real and billions are lost over a relatively short span of time. That is when brokers receive call after call with investors saying, "Cash me in for whatever you can get." This could be, but not necessarily is the third wave. The market will tell us over time. Such waves provide opportunity for great profit during the early stages.
The DJI were up well over 100 points early, but as of now, the Dow is up only 72.43. Gold has followed the general market and is up 672.50 now. Silver is up to 11.98. It seems somewhat unusual for the precious metals to move in concert with the general market. However, we must remember that when there is a significant correction in the general market, those trading on margin accounts must liquidate to cover actual and potential margin calls. Thus, they begin to sell everything. The mining stocks generally are the first to be sold and the prices are depressed. They will rebound as the market moves up and investors see the "bargain" prices of the mining stocks.
The Exchange Traded Fund (ETF) for gold trading under the symbol GLD is a convenient way to own the metal. The Canadian Central Fund (CEF) holds both gold and silver. Next to owning and possessing the metals themselves these are two of my favorites. I also like www.Everbank.com Metal Select Accounts and www.goldmoney.com accounts which enable you to own either gold or silver without taking physical possession.
I have been buying more of the CEF as the cost was less just over $9.00. I am continuing to hold the mining stocks even though the prices are somewhat depressed. You might want to place trailing stops on some of your mining stocks. I use these from time to time, but not on all my holdings.
Any escalation of the mid-East war situation would cause the price of precious metals and oil to jump significantly. The Iran confrontation appears to have cooled some, but could explode over night. In fact, it seems a bit too quiet at present making one wonder what is cooking. Also, it seems strange that there have not been more attacks outside of the mid-East area in recent times. That also seems strange.
I am just so pleased that all is in the hands of a Sovereign God Who loves and cares for His people and their eventual well being. If you are resting in His hands and working for the spread of His kingdom, you are one of His and under His protection.
Best to each, Doug
posted by Doug @ 9:14 AM
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