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FINANCIAL MARKET UPDATE By Edward Gofsky - May 9, 2009

Gold stocks breakout

Looks like gold stocks are breaking out to the upside and gold itself is ready to take $1000 again. Here are some charts to show the breakouts and the potential upside of this massive wave 3 move in gold and gold stocks. As I have said before, when gold gets to $1000 I will lock in the price by buying the HBD.TO (double short gold fund). By doing this I will make money if gold falls back below $1000 and this is a fake out move, or if this is the move that all us gold bugs have been talking about all of our other gold long positions will rocket higher in something that might resemble the tech stock bubble, so we can use the HBD.TO as a tax right off or just wait till gold fall below $1000 again later after its massive rise. And as bullish as I am on gold, I do not believe that it will stay over $1000 forever. What do you think the price of gold stocks will be if gold stays over $1000 for 6 months straight?  Can you say HUI 800!

 

 

 

 

 

 











 


 

 

 

 

 

 

 

 

 

And here is a chart of oil when it first broke over $40 many years ago in a massive head and shoulders bottom pattern like the gold stocks above!  Very Bullish!

 

 

 

 

 

 

 

 

 

 

 

 

Look what happened after breakout!

Edward Gofsky
I welcome all comments and views on my essay. Contact me to discuss this posting.
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