Monday, September 22, 2008

Small Update and Reasoning

I'm already up to ~1% and fairly happy about it. I just wanted to post a little bit of the reasoning behind the purchases. Besides the fact that all three of them are oversold on the weekly stochastic, there are several other reasons that one may hope for gains in the upcoming week. Most importantly: the 700billion dollar bailout plan. It is likely to influence the value of the dollar in the negative direction. ABX follows gold and GDX follows the gold miners. If the dollar deflates then the ABX and GDX stocks should rise; at least, that's what I'm hoping for.

Update: An overall 2.48% gain on today's investment. Hoping for gold and oil to rise again tomorrow.

Wish me luck. Good trading and take care.

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