Post by
play_n_lay on Aug 10, 2011 10:12pm
Gold Stock - Market Divergence
Super excited about the gold stock market diveregence we saw today. With the HUI up 3% and the market down nearly 4% we are seeing a great play for gold stocks right now. They have alot of catching up to do as they are trading like gold is at 1300 or 1400$/oz.
Scenario 1:
Gold Pulls Back = risk removed from market = market ralles = all stocks ralley = gold stocks ralley
Scenario 2:
Market keeps dropping = gold keeps running up = gold stocks (that have now divereged from market trends) run up
Scenario 3:
QE3 announced = stocks run up = gold runs up (inflation risk increaes) = gold stocks run up
I really can't think of anything that will bring down gold stocks over the next few days.
GLTA