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WSW Power Investor - Before the Bell (8/22/06)

Submitted by Mike Swanson on Tue, 2006-08-22 07:50.


Wow what a reversal yesterday. Gold stocks are now right at the top of their trading range. It's hard to imagine more bullish action than this with the XAU/gld ratio continuing to rise as gold stocks outperform the metal. Gold's resistance downtrend line now sits at 640 and it seems that the breakout is only a matter of time.

I want to add on to my positions. I'd expect some sort of pause at current levels for at least a few days and if we get it I'm going to add on.


Yesterday I sold EZM after it announced that it got bought out. I was wondering last week why it went up so much. Guess we know now. I bought at the end of July around 2.60 before it broke out. It's nice to book a gain, but it's money that is now free that I hope to put to use in the next few days.

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