Thursday Jan 12, 2012
Dividend paying firms were all the rage last year, commodity firms like gold and silver miners and energy serivce providers were out of favor. So far this year that is being reversed. Even as I write today, gold and silver and crude oil are advancing
even in the face of a strongdollar!
BID
Sootheby's is primarily an auction and sales firm. Their fortunes are tied to enthusiasm for collectivels and real estate. Go ahead and click the link to see what I mean. The stock has been in a downtrend since last July, the orthodox last top for the overall stock market. Note BID just broke above teh 50 day MA, and I think the overall downtrend. This of course has triggered buys in various quant programs, not the big jump, what is that three days ago?
Our point is that if you look at other commodity plays or any of the energy service providers you will see much the same chart pattern.
GDXJ
Here si another of our recent recommendations. GDXJ double topped in July Sept, then headed down, it is now recovering, again note the proximity to the 50 day MA. GM is exhibiting the same pattern.
The overall stock market is exhibiting a simialr pattern each day, it sells off in the morning. This is the result of those watching negative news from Europe ( their trading ends at 9:30 EST) and individuals deciding to avoid risk. But clearly the commodity on plays are building.
CEF Central Fund
Now follow along, the green line is yet another example of how a brief move under that support line threw all the traditional chartists into the negative camp. We even had pronouncements that the gold bull market had ended, hardly. Once all that group got short gold and silver, the market reversed. It has now climbed to the 50 day MA. Can you see that same 45 degree downtrend line I showed in the other graphs? It intersects right about here, where both MAs now are together. My bet is that GDXJ explodes to the upside when it moves past these MAs.
but that's just my opinion....
We will be out of town for funernal the next few days so I made multiple posts today to keep eveyryone occupied.
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