Friday, August 20, 2010

Bull Gold on August 20 2010

Jim Cramer Is A Gold Believer

“I am an unabashed believer in gold,” he says. “Gold can go to $2,000 in the next few years, and I’m not talking about 2020.” The “most bullish factor” for gold is that “we’re running out,” says Cramer. “There are no more big discoveries in the world,” says Cramer, adding that the next two months are traditionally bullish for gold because of jewelry demand in India and China.

Buying the SPDR Gold Trust (GLD) is Cramer’s preferred way to play the metal’s strength and he recommends the October 116 call option to capture the seasonal upsurge. His recommended miner is Agnico-Eagle Mines (AEM) and he suggests the November 55 calls.

Pointing to both the possibility of a war in the Middle East or just voracious demand from China, Cramer says crude oil will hit $100 within the next year. “My favorite integrated oil is ConocoPhillips,” says Cramer, who smiles on the 3.9% dividend yield. More speculatively he likes Weatherford International (WFT), which he calls “the cheapest oil driller by far.”

http://blogs.forbes.com/johndobosz/2010/08/19/jim-cramer-is-a-gold-believer-tech-buyer/?partner=dailycrux

Hindenburg Omen Confirmation #1

Tyler Durden's picture

Today we got our first Hindenburg Omen confirmation. The number of new highs was 136, and new lows was at 69 (per the traditional WSJ source). Granted this particular criteria set was a little weak as the 69 is precisely on the borderline for confirmation (the 2.2%), and the new highs number was not more than double the new lows (although it was close). Less gating were the McClellan oscillator which was negative at -83.6, and the 10 week MVA, which rose, which were the two remaining conditions. The first omen was spotted on August 12 - a week later the H.O has been confirmed. The more confirmations, the scarier it gets from a technical perspective, not to mention the conversion into a self-fulfilling prophecy (like every other technical indicator).

http://www.zerohedge.com/article/hindenburg-omen-confirmation-1


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