Post by Savant on Sept 30, 2004 8:39:14 GMT -5
Gold & Silver Rise on US Dollar Breakdown - Published 0930 EDT Thursday September 30 2004
Yesterday, in what now looks almost prophetic we stated: The Dollar is beginning to look vulnerable to that continuation move to the downside we also spoke about a while back, but can't quite bring itself to break down significantly.
Overnight, in European trading, it looks as if the Dollar finally broke down and is now threatening to test its lowest levels in six months and potentially could ultimately test 2004 and hence 21st Century lows later this year.
That has set the European currencies alight and Gold, Silver and Copper are all moving methodically higher as a consequence. December Copper has just made new contract highs and is poised to make new all time highs within this quarter. December Gold at $417.9 in particular is only about $18 from making new highs for the year
The stock market is reeling some this morning from an announcement by Merck MRK that it is withdrawing VIOXX a $2.5 Billion or so revenue medication that seems to have blindsided the markets at least for the short term.
Yesterday we sold most of the remaining issues highlighted over recent days between 0950 and 1010 EDT and were stopped out of the remaining issues intraday, fairly close to the recent highs in most cases. We are still long Ashland Oil ASH with as stop at 55.55 and we are long Escalon Medical Corp ESMC which yesterday reported record revenues and net income for fiscal 2004.
Regrettably, we missed the opportunity to rebuy VSEC yesterday ahead of a new surge past $33.00 a $7 plus gain for the day. Whilst we were already up substantially on this issue when we elected to recommend taking profits Monday, we should have been paying more attention to such a powerful performer as it had all the hallmarks of a candidate poised for further big gains, not unlike BHO and EXM earlier this month. Unfortunately, time constraints prevented VSEC from getting the attention it deserved yesterday. We are still long Catapult Communications CATT and that did perform well and we are placing a sell stop on this issue at 19.20.
Caterpillar CAT continued to soar yesterday on the heels of announcing unprecedented demand in all of its divisions. Looks as if CAT could set new all time record highs soon and possibly could be a candidate for $100 plus prices later this year.
Oil prices broke a bit over a dollar yesterday, but today have once again snapped back. Still a tough call at this point. In the main, yesterday's comments remain valid at this point. A further breakdown today could precipitate heavier selling, but the sector still looks strong, with Heating Oil touching record highs this morning.
Have a great Thursday
Trade Well
Savant
Yesterday, in what now looks almost prophetic we stated: The Dollar is beginning to look vulnerable to that continuation move to the downside we also spoke about a while back, but can't quite bring itself to break down significantly.
Overnight, in European trading, it looks as if the Dollar finally broke down and is now threatening to test its lowest levels in six months and potentially could ultimately test 2004 and hence 21st Century lows later this year.
That has set the European currencies alight and Gold, Silver and Copper are all moving methodically higher as a consequence. December Copper has just made new contract highs and is poised to make new all time highs within this quarter. December Gold at $417.9 in particular is only about $18 from making new highs for the year
The stock market is reeling some this morning from an announcement by Merck MRK that it is withdrawing VIOXX a $2.5 Billion or so revenue medication that seems to have blindsided the markets at least for the short term.
Yesterday we sold most of the remaining issues highlighted over recent days between 0950 and 1010 EDT and were stopped out of the remaining issues intraday, fairly close to the recent highs in most cases. We are still long Ashland Oil ASH with as stop at 55.55 and we are long Escalon Medical Corp ESMC which yesterday reported record revenues and net income for fiscal 2004.
Regrettably, we missed the opportunity to rebuy VSEC yesterday ahead of a new surge past $33.00 a $7 plus gain for the day. Whilst we were already up substantially on this issue when we elected to recommend taking profits Monday, we should have been paying more attention to such a powerful performer as it had all the hallmarks of a candidate poised for further big gains, not unlike BHO and EXM earlier this month. Unfortunately, time constraints prevented VSEC from getting the attention it deserved yesterday. We are still long Catapult Communications CATT and that did perform well and we are placing a sell stop on this issue at 19.20.
Caterpillar CAT continued to soar yesterday on the heels of announcing unprecedented demand in all of its divisions. Looks as if CAT could set new all time record highs soon and possibly could be a candidate for $100 plus prices later this year.
Oil prices broke a bit over a dollar yesterday, but today have once again snapped back. Still a tough call at this point. In the main, yesterday's comments remain valid at this point. A further breakdown today could precipitate heavier selling, but the sector still looks strong, with Heating Oil touching record highs this morning.
Have a great Thursday
Trade Well
Savant
