Sunday, July 12, 2009

I updated the file I had been putting together with Friday's close and I am not sure if I have identified anything or not. In the end I took the last three runs in the POG and tried to tie it back to movement in gold equity stocks(some stocks were not 100% gold plays though). It goes to show especially with the first period that gold equity stocks do not blindly follow the spot gold price, in all we know however that there is correlation there most of the time. In the first period the market big boys NCM,LGL,DOM and SGX did perform better then the majority.

I was going to separate out categories into hedged and unhedged producers and a third category, explorers. In the end I thought it was pointless as I was really looking for the greatest opportunities to be had in price movement regardless of how a company had developed.
Must stocks did pretty well over the second and third periods and there were some stellar performers ROL and OGC in particular. IGR has also been a consistent performer.
Whilst there are many opportunities to trade all these stocks and make money from short term charts my circumstances do not allow me that opportunity so my object was some medium term trades rather then daily or short term.
There is no guarantee that past performance will be reflected in future performance but I have certainly narrowed my gold watchlist down to a more manageable amount from my point of view.
Where to from here I don't really know but maybe a few top performers there is a good chance again.