Buy gold buy more stocks

[noddyboy]

Quote from Petsamo:

Dang! I got caught only 95% long. My spreadsheet indicates a gap up, but I hope for a gap down.

Why are you hoping for a gap down?

I am not disturbed by the small swings. GDX is up 3% today! GLD at new closing highs!

 

[noddyboy]

Excellent dip to buy. Going 5x long.
(IB Portfolio Margin allows 6x)

 

[noddyboy]

GDX already up another 2% after up 3% yesterday.

NFLX +3.6%
WFM +0.9%
AAPL +1.4%

 

[noddyboy]

GLD breakouts to all time high. Momentum will follow as per turtle trader methodology.

 

[noddyboy]

Prepare for the white swan that will happen but can never be anticipated (by some)...

 

[noddyboy]

GDXJ up almost 5% now.

 

[shortie]

nice call!

i am glad you pay attention to my thread "Why Gold is a bad investment"
http://www.elitetrader.com/vb/showthread.php?s=&threadid=223320

 

[noddyboy]

Quote from shortie:

nice call!

i am glad you pay attention to my thread "Why Gold is a bad investment"
http://www.elitetrader.com/vb/showthread.php?s=&threadid=223320

I did...my call is to buy gold but buy MORE stocks. Gold underperforms as it has a smaller beta than stocks, but it hedges tail risk.

 

[tradingjournals]

Hey Noddy: Nice trading there! I am following GLD (not the stocks index). Could today's gap turn to an exhaustion gap?

 

[noddyboy]

Quote from tradingjournals:

Hey Noddy: Nice trading there! I am following GLD (not the stocks index). Could today's gap turn to an exhaustion gap?

My experience with commodities is that there can be shortages. They don't trade the same way as stocks. That is, no one can find more gold instantaneously if all the Chinese residents want to buy to hedge inflation. On the other hand, companies can always issue more shares, and we have indeed seen that, eg. with Linkedin IPO, etc. (Technically this is known as positive skew.)

Today's gap might be exhaustion, but I probably only reverse myself under 50 SMA. In 1980, we had many gaps up.