Sunday, March 23, 2008

Gold price down, market up, then what?

My DGP dived. It went to as high as above $28, then went all the way down to $22.44. Many people believe the rate cut is closed to an end and therefore gold price stopped to go up. Well maybe they are right but I guess the story is still not close to the end. But in the meantime I acknowledge that people may be shifting out money from commodities, at least for a while (look at SLV and DBA as well). Commodity ETFs dropped pretty fast over the last few trading days, I think at least there should be a little rebound before it heads a bit more lower. I'll think about closing my DGP position, even for a little loss.

On the other hand, my SKF, SRS and SDD are now all in the red. I just read the charts myself, somehow I found that SRS is even weaker than the others (based on relative strength). I guess I'll try to find chance to close my SRS position, and maybe as a hedge to start a URE position, but keep my SKF and SDD position. As well, I may add more SDD if I see fit. I still like EEV, I'll see how it approaches the 50-day EMA (if it will) and may start a small position there.

Finally agricultural commodity ETF. The ultra long and short agricultural commodity ETF in Canada finally arrived, but with very little volume. DBA went down with other commodity ETFs over the last few days and actually made a double top, definitely a short term top. I'll see how it retreats back to the 200-day EMA and may start a small position in HAU.TO.

Watch the clips on Youtube about Jim Cramer incident on Bear Stearns. I think he is done, he lost all his credibility. I think people should learn something:

1. do not just believe what you see and hear from any media about investing
2. it is okay to be wrong, but not okay to lie
3. even former professional can be deadly wrong in this area because this area is dynamic
4. current professional can be deadly wrong too
5. that's why I say individual stocks are dangerous and may leave you no time to cash out and that's why I want to move my strategy mainly on ETFs but not individual stock
6. you should take care of your own money, not Jim Cramer

Bye bye Jim, I bought two of your books and I think they are well written. People may accept your wrong call but not your lies. I guess you are at least wealthy enough to live on your money (hopefully not all US dollar) till you die. I guess nobody wants to hear your comment on any stock anymore because you are proved not reliable. Just accept you don't know much about all stocks and you made wrong calls.

I understand I don't know much about individual stocks, that's why I'm making changes.

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