Thoughts on Markets

Tuesday, May 19, 2009

A peak tonight for insight into what is coming tomorrow!

This is a quick look at international markets. First, examine the Miners P&F graph. This is showing a very strong upward trend for the mining stocks. It is stronger than the precious metals. Historically, the miners tend to precede the metals, and the miners seem to pull the metals upward. Our trading shares star, Hecla Mining (HL) was quite strong during trading today. It ended the day well above 3.15. We should have added to our portfolio yesterday, but that is hind sight which can always be accurate. The difficulty is buying on dips. I will be a buyer of more HL below 3.00.

Here is the graph on gold. Note the strange dip in gold yesterday (red) and today (green) near the middle of NY Global trading. This is not a obvious as the drop at the NY opening yesterday, but it is apparent on both graphs.
Silver shows a similar drop tonight, but it is not a steep as that of gold.
Gold is currently 926.10 up 1.10 on an up tick, and silver is 14.11 off 0.04 on a down tick. Should be an up day for the miners tomorrow. They should be looking very good unless the metals are slammed on the opening in NY.

God is in control and bringing all of this volatility to us for our eventual benefit. He is even providing opportunity for us to trade some, but not all of our shares as the prices move upward and then down. We must be risk tolerant, plan well, stick to the plan after committing it to the Lord and depend on Him for results.

Remember the Alpha Strategy. Let's move forward with is slowly accumulating the consumable which are durable during sales. Be careful to accumulate only those which we can use on a continuing basis. Thank the Lord for the foresight to be able to follow this plan for more comfortable survival.

Best to each as we learn to wait upon the Lord. Doug

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