February 3, 2012

A POINTER FOR INTERNATIONAL SUBSCRIBERS REGARDING GOLD AND SILVER

We often trade gold ETF GLD and silver ETF SLV. These ETFs are not available in some international markets. However, different gold and silver ETFs are available in most markets. Please consider ETFs that trade in your market with the following two characteristics: the highest volume ETF and the smallest spread between bid and ask.

Full size futures contracts are suitable only for large accounts. The reason behind this is our methodology to scale in and scale out.

Some markets, including the United States have mini or micro futures contracts available. Usually these contracts exhibit wide bid ask spreads. However if you can find a small futures contract in your market with tight bid ask spread it should work well with our methodology.… Please click here or the title below to read more.

February 3, 2012

TAKE PROFITS ON MRO

MRO has been a long term position. Our reason for buying was that considerable value could be unlocked if MRO went to spin off its refining operations. Well, it worked out just the way we predicted. MRO spun off its refining operations. The new refiner has been trading under the symbol MPC. We received shares of MPC in the spin off. We have already taken profits on MPC.

It is time to take profits and exit this position.

This has turned out to be a very profitable long term position. Now there are better opportunities elsewhere. It is time to take profits and exit this position. … Please click here or the title below to read more.

February 3, 2012

GREAT NEWS A FEW MINUTES AGO AND GOLD SPIKES UP

The U.S. Department of Labor just reported employment numbers for January. This number is known as ‘Mother of all numbers’. January non-farm private payrolls increased by 257k vs 168k consensus. There are several components to this number, but our models focus on non-farm private payrolls. The number was a blow out on the positive side. This means U.S. economy is improving strongly. This number makes it highly unlikely for QE3 to occur in February.

By any rational school of thought and analysis this is a negative development for gold and silver.

What do gold and silver do? They jump up. Please see our post from yesterday:

FLAT EARTH MOMO CROWD RUNNING UP GOLD AND SILVER

This is a very positive development for the stock market and negative development for the bond market.… Please click here or the title below to read more.

February 3, 2012