GLD Feb. 2010

Hamilton

GLD feb 2010

Gold , here represented by the ETF GLD has confused most of us most of the time. Today , in the Toronto Star , there was a list of the best and worst and  at the very top was HXD and at the bottom a good number of the gold mutual funds. How can this be , is not gold supposed to go up when the world breaks apart?? Well, actually no, not if the world is going into deflation! I have no idea how low gold will go but for the moment we should look for 850 as the first stop and then about 680. Time will tell, I will keep you appraised.

TM Toyota (formerly Datsun), Feb 2010 (see blog a week or so ago).

Hamilton

tm feb 12

This is a repeat of the Toyota recommendation, buy at $71.50 and hold at least to $80  as at a minimum we should get an a-b-c structure, which we do not (yet have). There is also the gap at around $83 that may attract the stock. In any case, so far so good so use a stop loss if you are playing this one big.

TSE Feb 12, can things get more annoying ?

Hamilton

tse feb 12 2010

It is difficult to rhyme the S&P with the TSE, they seemed to be a little out of phase with each other. In the S&P the last leg down looks more like a new wave down whereas in the TSE the idea of a B-wave seems more plausible regardless of the appearance of 5-waves down, Certainly the possibility of the action over the last few days being a wedge (has to be a c ) would make that imperative. Even so the wedge may be a simple a-b-c as well so I would not dwell too long on this. Here the important thing is that whatever the pattern in either the S&P or the TSE, we are at the cusp of a big down-leg.

FAA and EEM, acronyms for airlines and emerging markets.

Hamilton

Airlines, have a capital structure that almost guarantees that at some point they will go bankrupt, and, if insanity is defined as doing something again and again in the expectation that the result will be different , only the insane would continue to own FAA. The case for the emerging markets is only marginally less compelling. Here are the charts.

FAAeem

  No analysis here, just a reminder how good things can be, for a while.