Sharechatters should be aware this may cause some
temporary instability for gold stocks, eg; Intec (INL).
Would you agree?
----- Original Message -----
Sent: Thursday, January 29, 2004
Subject: [sharechat] Gold Woody
In recent days, April Gold has been in a fairly narrow trading range,
between 414.50 and 406.3. A close below 406, which we could see today,
should pressure the gold down to at least $397 an ounce, and possibly as
low as $388 within a matter of days. This is a 50% Fibonacci retracement
from contract highs.
From those levels, I would look for an
opportunity to initiate an option strategy. A stradddle would be good here
as if gold rallies again it would quickly pay for the Downside
A straddle is the buying of a Call and a Put @ the same strike price,
effectivly hedging your self.