Commodities Down: Oil / Gold
I have bad mouth sores again. I now count about seven areas in my mouth where the the skin is white (open sore). Never mind eating, it hurts to talk. This will last at least a week or two - nice. But the truth is that this is a small price to pay in order for me to prolong my life. I basically need to buy enough time so that hopefully a miracle biotech cure for cancer is found. I truly believe that we will find many more new drugs to cure many diseases in our life time. Biotechnology sector is one of my top choice for the next ten years.
As most of you know I have a keen interest in both Oil and Gold sectors. Why? Because if you time it right, it can payoff handsomely in a short period of time. Long term, both sectors entered a bullish cycle. Short term, however, it looks negative.
I use OIH for oil sector bets. OIH is a basket of oil services companies. These companies move faster than oil producers such as Exxon or ConocoPhilips. I just love OIH, its that simple. Why then do we not own it in our Acetrader portfolio? Because I am waiting for the right price. The last time we owned it, we sold it at $165/share (refer to 5/14 note). Today it closed at $125 - wow, I did not expect it to go down this far this fast. So do I feel its a good buy now? No, not yet. OIH has broken an important trend line. Although this is a good price, it is going to be dead money for a while. Basically oil price went below $66/barrel, I now think that it can go as low as $55. The big surprise was that Iran is lowering its tail finally. This is not good for oil price. Let's wait until the dust settles. We will definately buy OIH later!
I use GDX to trade gold sector bets. This is a basket of gold/silver/copper producers. Gold price went down to $580/oz - down $22 today alone. I love to own gold mining shares but it was a little too expensive. Now, the price is coming down finally. I expect gold to go down to about $550/oz - we will also definately own GDX or BGO. Let's wait again.
Sometimes in investing game you need to do nothing.
You loose if you move too much. This is such a time. Let's be patient because I see many many good deals going on. And I think the sale will go on for a while. Just get your money ready. We will be buying and selling soon.
P.S: In order to raise funds to buy above stocks, we need to sell something in our portfolio. I would welcome your ideas on this. Which ones should we "fire"? Please vote.
As most of you know I have a keen interest in both Oil and Gold sectors. Why? Because if you time it right, it can payoff handsomely in a short period of time. Long term, both sectors entered a bullish cycle. Short term, however, it looks negative.
I use OIH for oil sector bets. OIH is a basket of oil services companies. These companies move faster than oil producers such as Exxon or ConocoPhilips. I just love OIH, its that simple. Why then do we not own it in our Acetrader portfolio? Because I am waiting for the right price. The last time we owned it, we sold it at $165/share (refer to 5/14 note). Today it closed at $125 - wow, I did not expect it to go down this far this fast. So do I feel its a good buy now? No, not yet. OIH has broken an important trend line. Although this is a good price, it is going to be dead money for a while. Basically oil price went below $66/barrel, I now think that it can go as low as $55. The big surprise was that Iran is lowering its tail finally. This is not good for oil price. Let's wait until the dust settles. We will definately buy OIH later!
I use GDX to trade gold sector bets. This is a basket of gold/silver/copper producers. Gold price went down to $580/oz - down $22 today alone. I love to own gold mining shares but it was a little too expensive. Now, the price is coming down finally. I expect gold to go down to about $550/oz - we will also definately own GDX or BGO. Let's wait again.
Sometimes in investing game you need to do nothing.
You loose if you move too much. This is such a time. Let's be patient because I see many many good deals going on. And I think the sale will go on for a while. Just get your money ready. We will be buying and selling soon.
P.S: In order to raise funds to buy above stocks, we need to sell something in our portfolio. I would welcome your ideas on this. Which ones should we "fire"? Please vote.
posted by Jaewoo | 10:11 PM
1 Comments:
My 2 cents:
1. AUTO.OB has dissapointed me (i got in at $1.33 and cut my loses at $1.03). (My opinion: sell)
2. BTYH: if you really needed some funds, then i would do some profit taking on this holding. +50% is a handsome point to get out :) (My opinion: sell, if you need the funds).
3. IGLD is working hard and i think the 4th quarter will be good things to this stock. (My opinion: hold)
Everything else on the portfolio seems smart to hold on to them for now, atleast till the end of the 4th quarter. Of course, this is just the opinion of an amatueur-casual-investor, so keep a grain of salt handy :)
-Joseph
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