Archive for March, 2009
Buy GLD
It looks like the bull market in gold is just getting started. The 50 day ma crossed upward over the 200 day ma signaling a bull market. Buy GLD. Leaps going out to Jan 2011 are available but premiums are high due to the volatility in gold so invest accordingly. Another possibility would be to buy DGP a gold double long etf. GLD is currently trading for around $90. per share.
UPDATE 6/5/09: GLD has formed 2 extremely bullish chart patterns. It has formed a massive inverse head and shoulders pattern that spans from March, 2008 until now and it has formed a cup and handle that spans from Feb, 2009 until now. It looks like gold is getting ready to bust through the $1,000. per ounce mark. The projected price target in the next leg up for GLD is $130. per share. Now is the time to add to your positions.
Buy FXI
FXI looks like a good buy at these levels. FXI appears to be breaking out to the upside from the downtrend started in Oct. 2007. The technicals and fundamentals for China look good at this point. China has cash in the bank, no debt, an intact banking system and an annual growth rate of 6-8%. FXI could trade short term to 35 and longer term make a run for its old highs in the 70′s. Leap’s going out to Jan 2011 are available and the premiums look reasonable. FXI is currently trading at around $27. per share.