I Exited My NEM Short/ Long XAU Puts Positions
I exited my NEM short/long XAU puts positions, covering NEM at 43 versus the short sale at 45.74, and, I sold the March 130 XAU puts (XAVOF) at 2.30 versus a basis/average cost of 0.425, so, I made over 500% on the puts in a few weeks time, and, the short sale made +6.37% in a few weeks time. The downside gaps at 43.06 for NEM and at 132.09 for the XAU, plus Elliott Wave patterns, were extremely useful for knowing when to exit.
HUI/NEM/XAU were/are in a very short term Wave C today as expected, see http://finance.yahoo.com/q/ta?s=%5EHUI&t=5d&l=on&z=l&q=c&p=&a=m26-12-9,p12,fs,w14&c==. HUI/XAU hit minor intermediate term cycle highs (upcycle began 1-10-07) on 2-23-07 (reliable lead indicator NEM on 2-22-07). The Wave A crash bottomed late Tuesday for HUI/NEM/XAU. The countertrend Wave B peaked late Wednesday for HUI and earlier on Wednesday for NEM and the NEM dominated XAU.
I waited for NEM to fill it's downside gap at 43.06, then entered a limit order to cover at 43. Then the XAU closely approached it's downside gap at 132.09 (http://finance.yahoo.com/q/ta?s=%5Exau&t=5d&l=on&z=l&q=c&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c==), and, the decline was very rapid, so I put in a limit order to sell the March 130 XAU puts (XAVOF) at 2.30, and they quickly sold at 2.30.
Williams %R hit an extremely oversold -100 for HUI/NEM/XAU today, and, Lycos Thomson I Watch showed much more NEM buy interest than sell interest, see http://thomson.finance.lycos.com/lycos/iwatch/cgi-bin/iw_ticker?t=NEM&range=0&mgp=0&i=2&hdate=&x=8&y=9, which were factors in my decision to exit my NEM short/long XAU puts positions. Also, the WMT Lead Indicator was very bullish (+0.50%+ versus SPX), which pointed to an S & P 500 rebound.
HUI/XAU's Wave 2 Cyclical Bear Market began 5-11-06, see charts 7 and 9 at http://www.joefrocks.com/GoldStockCharts.html. NEM's Wave 2 Cyclical Bear Market that began on 1-31-06 ended on 10-4-06 at 39.84, so, reliable lead indicator NEM is probably in a 5-6 yearish Wave 3 Cyclical Bull Market since 10-4-06, see chart 8 at http://www.joefrocks.com/GoldStockCharts.html. ....... http://www.JoeFRocks.com/ .
HUI NEM XAU
HUI/NEM/XAU were/are in a very short term Wave C today as expected, see http://finance.yahoo.com/q/ta?s=%5EHUI&t=5d&l=on&z=l&q=c&p=&a=m26-12-9,p12,fs,w14&c==. HUI/XAU hit minor intermediate term cycle highs (upcycle began 1-10-07) on 2-23-07 (reliable lead indicator NEM on 2-22-07). The Wave A crash bottomed late Tuesday for HUI/NEM/XAU. The countertrend Wave B peaked late Wednesday for HUI and earlier on Wednesday for NEM and the NEM dominated XAU.
I waited for NEM to fill it's downside gap at 43.06, then entered a limit order to cover at 43. Then the XAU closely approached it's downside gap at 132.09 (http://finance.yahoo.com/q/ta?s=%5Exau&t=5d&l=on&z=l&q=c&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c==), and, the decline was very rapid, so I put in a limit order to sell the March 130 XAU puts (XAVOF) at 2.30, and they quickly sold at 2.30.
Williams %R hit an extremely oversold -100 for HUI/NEM/XAU today, and, Lycos Thomson I Watch showed much more NEM buy interest than sell interest, see http://thomson.finance.lycos.com/lycos/iwatch/cgi-bin/iw_ticker?t=NEM&range=0&mgp=0&i=2&hdate=&x=8&y=9, which were factors in my decision to exit my NEM short/long XAU puts positions. Also, the WMT Lead Indicator was very bullish (+0.50%+ versus SPX), which pointed to an S & P 500 rebound.
HUI/XAU's Wave 2 Cyclical Bear Market began 5-11-06, see charts 7 and 9 at http://www.joefrocks.com/GoldStockCharts.html. NEM's Wave 2 Cyclical Bear Market that began on 1-31-06 ended on 10-4-06 at 39.84, so, reliable lead indicator NEM is probably in a 5-6 yearish Wave 3 Cyclical Bull Market since 10-4-06, see chart 8 at http://www.joefrocks.com/GoldStockCharts.html. ....... http://www.JoeFRocks.com/ .
HUI NEM XAU
Labels: Gold, Gold Stocks, HUI, NEM, Silver, Silver Stocks, SPX, XAU
posted by Joe Ferrazzano at
9:58 AM
