Forum Archive Index - January 2004

["Cristine Kerr" <criskerr@optusnet.com.au>]

Thanks Woody. Just thought I should make the association, just in case.

----- Original Message -----

From: Woody

To: sharechat@sharechat.co.nz

Sent: Thursday, January 29, 2004 12:56 PM

Subject: Re: [sharechat] Gold Woody

Cris

Possibly however I have not studied the relationship between gold and gold stocks. My vision on Gold is often myopic but it makes me money.

 

Woody

----- Original Message -----

From: Cristine Kerr

To: sharechat@sharechat.co.nz

Sent: Thursday, January 29, 2004 12:47 PM

Subject: Re: [sharechat] Gold Woody

Hi Woody,

Sharechatters should be aware this may cause some temporary instability for gold stocks, eg; Intec (INL).

 

Would you agree?

 

Regards,

Cris

----- Original Message -----

From: Woody

To: Sharechat@sharechat.co.nz

Sent: Thursday, January 29, 2004 11:48 AM

Subject: [sharechat] Gold Woody

In recent days, April Gold has been in a fairly narrow trading range, between 414.50 and 406.3. A close below 406, which we could see today, should pressure the gold down to at least $397 an ounce, and possibly as low as $388 within a matter of days. This is a 50% Fibonacci retracement from contract highs.

From those levels, I would look for an opportunity to initiate an option strategy. A stradddle would be good here as if gold rallies again it would quickly pay for the Downside Option.

A straddle is the buying of a Call and a Put @ the same strike price, effectivly hedging your self.

 

Woody