Real Wealth #245 09/04/2009
Gold Testing $1,000 Level, CNBC.com and Canada's Business Network
I was pleased to be asked to appear again on
It looks like we’re on the verge of testing the $1000 overhead resistance level, and could see a new historic high in the next several weeks. I expect to see some more back and fill be it appears we may be moving from a neutral technical position to a bullish position.
While the short term swings can generate wonderful in and out trades, I and my trading staff have approximately a 70% win on a Bullish GLD calendar trade working in my Gold & Energy Options Trader . Long term traders should keep their eye on the ball when it comes to gold. The U.S. Dollar weakness continues and will continue for at least the next few years.
I was interview by CNBC.com yesterday and made the case for $1,000 in the short term and $2,500 to $5,000 per ounce in the next few years.
Going back to British Petroleum (BP) and the large oil discovery in the gulf of Mexico announced on Monday which is in fact the third largest deposit discovered in recent years. The announcement moved the stock sharply higher but I think the discovery is being over hyped.
See if you can find the verbal slip in this interview, I refer to consumption in the billions instead of the millions – oops!
I’m still getting used to staring into a teleprompter and being asked questions from a host that’s not in the room, much less the same country. See the video see if you can catch the slip....
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BP is a great company of course. It’s the second largest company in Euro-Land and trades at about a 11 PE and pays approximately a 6% dividend. While I’m not a huge fan of large integrated oil companies BP would make a nice addition to one of our model portfolios so I am watching for either an entry point or a n opportunity to write a put options so as to either grab some time premium profits or get our recommendation to buy the stock – just the right entry point.
I and my Gold & Energy Options Trader staff are also hoping for a bigger spike up in BP so we can employee a bearish spread – a more aggressive trade that would allow us to profit on a pull back.
Besides an options recommendation in BP, we have several trades were close to recommending and initiating, don’t miss the fireworks. We’re about to grab a chunk of change on a GLD trade we initiated just a few days ago.
We’ve just taken our 17 straight winning recommendations and now have a 596% winning recommendation track record in the last 2 years and 2 months.
Finally, if you want to see the CNBC.com article, there’s one cautionary note. The article included the recommendation of a gold ETF/proxy. For the record again stick with physical gold unless it’s a short term options trade like the ones we recommend in Gold & Energy Options Trader.
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