Wednesday, June 11, 2008

Why Gold?



This chart shouts buy!

GLD now has options. Bernanke might not bluff, but he might raise 25 basis points. GLD might still work. We think he will bluff on the stronger dollar is happening.
The Plunge Protection Team is talking tough, but that is all they have.
If it dips below 850 per ounce would exit.

Good Fortune from Trade-Equity!!!

GLD---SDS---IPI---Hot Hot Hot

Cramer wants to tell us daily that there is "Bull Market Somewhere".

Well, with the global economy the way it is, this elusive Bull Market is a little harder to find.

There are a few sectors that are moving like fertilizer, but some of them have shown such large gains in the last year I would have to be very careful that they aren't toast on their P/E.

3 trades we do like right now are GLD, IPI, and the SDS.

GLD will work until Bernanke speaks possibly longer depending on what he says.

IPI along with the Fertilizer Sector is on fire right now. This is an agriculture play and with the Midwest under water, this might work for sometime like last year.

The SDS is the Ultrashort S&P ETF. This is waiting for the capitulation bottom that will ultimately happen on day in the future. We are watching 11700 on the Dow.

Good Fortune from Trade-Equity.com!!!