So far this year the stocks have performed abysmally so todays bounce came as some relief as the HUI was down around 26% since its recent peak. Gold and silver have both had a hard time to say the least and many investors who have been running tight stops have seen their positions closed out.
Gold traded down and below the all important support level of $1050/oz intraday, but managed to climb back and close at $1065.60, nerve jangling stuff and not for the fainthearted. Is this correction over yet? No-one really knows for sure, at such a micro level of analysis it is always extremely difficult to get it right on a day by day basis, however we must make the best of what we know and hit the buy and sell buttons accordingly.
Back to the HUI, the technical indicators suggest that it is now oversold with the RSI hitting '30' and bouncing back, the STO and the MACD are also turning in the stocks favour. For what it is worth we think that this dip is worth buying, but as always go gently.
Thanks for the all the emails that you have sent us and please accept our apologies if we have not replied to you as we are unable to get to all of them. We will try and respond to the comments in the comments box as and when we can.
For those who followed us into Agnico-Eagle when we bought both the stock and some Call Options the old buzzard did well today gaining 7.52%, not bad for a company with a market capitalization of $8.48 billion, who says the mid caps cant fly. The Calls put on 50% to catapult us back into the green with an overall gain of about 17% on this trade. (the MAY 2010 series at a strike price of $60.00, symbol AEMEL for which we paid a price of $2.85 per contract. At the close of trading in NYC today the closing bid stood at $3.35 and asking price was $3.45.)
All the best.
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