Posted on Monday, 1st February 2010 by admin

This stock index is less known as it is regrouping the 60 biggest stock on the Canadian Stock Market. However, Canadian equities just went through one of its best year in 2009 so you might want to take a look at how the TSX 60 performed in 2009:

Best TSX 60 Stock Picks for 2010:

As I did with the NASDAQ and the S&P 500 Stock Picks ideas, I will be giving my thoughts on my favourite 3 stocks on the Canadian (I am not going to take RIM as I have already did it with my NASDAQ stock bet).

Manulife Financial (MFC)

The sky has fallen on the head of Manulife from the past 18 months. This is why I am according some attention to this financial stock. I think that Manulife could perform well in 2010 if they show strong financial results and reassure investors that their problems are behind them. It is fundamentally a strong company with a solid history… could be a great pick for 2010.

Husky Energy (HSE)

I like Husky and I like the fact that the oil will probably go up in 2010 China and India deeply need Canadian Oil Sands to produce more oil to support their internal growth. They are big consumers of car and gasoline at the moment. Husky should be able to take some great profit of the BRIC.

SNC Lavallin (SNC)

Since I can’t take RIM twice, I will go with a well establish engineer firm from Quebec. As infrastructures around the world are falling apart in developed countries, we will need engineer firms with a great background and experience. This is how SNC Lavallin will be able to perform well in 2010.

Tags: 2010 stock picks, best performing stocks
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Posted on Wednesday, 27th January 2010 by admin

After most investors got burnt by the 2008 credit crunch, we ran into one of the best performing years in term of return in 2009. Below is listed the best performing stocks of the S&P 500 over 2009.

There were a few surprises such as Ford (312%) who was able to get out of the car industry bad reputation and survive they way through way better than its competitors Chrysler and GM. American Express (117%), Goldman Sachs (101%) and Morgan Stanley (85%) were the financials who performed the best in 2009. While several financials are still struggling (have you seen the recent loss reported by CITI Bank?), they knew how to restructure their activities and react rapidly.

Top S&P 500 Stock Picks in 2009

For the best performing stocks in 2010 out of the S&P 500, I would bet $2 on:

Goldman Sachs (GS)

I like the way they have handled the credit crunch crisis and how they manage through the storm. This is the perfect timing in 2010 to outperform their competitors and gain more market shares.

Walgreen (WAG)

I like pharmacy because of the population aging faster than a race car. We will obviously need more pharmacist and more medical products in the upcoming years. Recession or not, people needs to get treated. On the other side, I must admit that this is a more defensive stock pick than my other two.

Bank of America (BAC)

This would be my third stock picks when I think about the best performing stocks in 2010. After facing multiple problems and going through the purchase of Merrill Lynch, they seriously handicapped their balance sheet in 2008-2009. However, if they can show investor that they are able to integrate Merrill Lynch properly and excerpt the best of it, they will definitely be among the best performing stocks in 2010.

Tags: best perfoming stocks 2010, stock picks
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Posted on Monday, 25th January 2010 by admin

Below is the chart of the best performing stocks on the NASDAQ for the year 2009. As you can see, there are not only small unknown company that can show triple digits return in the span of 12 months. Among the best performing stocks of 2009 on the NASDAQ, we have known company such as  Baidu (205%), ScanDisk(171%),  Amazon (147%), Starbucks (135%) and Apple (135%).

BEST PERFORMING STOCKS ON THE NASDAQ FOR 2009

If I had to bet on the NASDAQ best performing stocks for 2010, I would go with:

Google (GOOG)

The company is showing strong growth and have a lot (too much!) liquidity in their book. However, they have also lunched their first phone and are battling with China (their concurrent, Baidu is currently benefiting from this issue on the stock market to soar to higher level). Even thought there are some uncertainties, I am sure that Google will find their way to the top of the NASDAQ for 2010.

Research in Motion (RIMM)

The Blackberry maker has gone through its share of problem in 2009. From deceiving new phones to reducing earnings and sales number, their stock went through a hard time even if RIMM grew by 59% in 2009. 2010 will be their chance to prove the world they can offer more than their best seller intelligent phone; the Blackberry.

EBAY (EBAY)

What can I say beside I just love this company! I think that with the current recession in the USA, Ebay will benefit from the new frugal side of American Customers who will look for deals and used stuff. Since selling online is a great way to increase a household income rapidly, more Americans will be more likely to use this internet service.

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Posted on Saturday, 23rd January 2010 by admin

As we mentioned in our previous post, we are reviewing the best Canadian Mutual Funds issued by the Big Canadian Banks (BMO, Scotia, RBC, TD, CIBC and National Bank). Today, we are looking at the best performing mutual funds during a bear market. We were “lucky” enough to get a really tough year 2008 on the stock market so this was the perfect timing to see which funds perform best in this very hostile environment.

First Category: The Bear Tamers Mutual Funds

These 2 funds were strong enough to show strong results for Canadian neutral balanced funds. In fact, they were showing a loss around -11% in 2008 while most Canadian balanced funds were around -16% to -25%.  Interesting enough, on a very short period of time (3 years), they show positive results even though the year 2007 didn’t show much growth on the stock market and the year 2008 was a complete catastrophe.

Second Category: The Bear Busters Mutual Funds

In this category, we regroup the bonds and mortgage funds that always show good return during a bear market. While the stocks are plunging, the bonds and mortgage funds are known to offer some interesting yield.

Third Category: The Strong Mother Ship Mutual Funds

We call them strong as they were hit by a huge storm in 2008 (they lost between 42 to 48%) but they still show very high return over the past 10 years. Those Canadian Mutual funds are known to outperform and have a solid history. No matter how strong the bear market is, they will keep their head over the water.

As you can see, there are several ways to chose mutual funds in order to go through a bear market. You can pick a fun that will do good regardless of where you stand in the economic cycle, you can also decide to hide from the stock markets and refuge your investments towards mortgage and bonds funds or you can accept to live the russian roller coaster life with strong mutual funds that always show big numbers (positive or negative) but have a strong return history.

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Posted on Wednesday, 20th January 2010 by admin

Over the past few years, we have been running through a lot of market fluctuations and selecting our stocks has become quite difficult. For those who have decided to quit stock picking and looking towards mutual funds, we will be presenting the best Canadian Mutual Funds offered by banks.

Today, we show a global appreciation of each Canadian mutual funds family (provided by Canadian bank only). You will be able to see which mutual fund family has been showing the best return over one, three and five years.

Best Canadian Mutual Funds (Canadian big Banks only)

As you can see, there is a huge difference from one Canadian mutual fund family to another. Some banks have decided to reduce their mutual funds offer (such as the BMO, National Bank and Scotia Securities) while the 3 others (CIBI, RBC and TD) have multiplied their mutual fund family.

The percentage besides the number of the above average performers mutual funds for each family determines how many funds finish in best first and second quartile. At first glance, the TD fund might see very attractive when you see that they have 66 mutual funds among the best performing in Canada. On top of that, even when we consider their the date in percentage (19.7%) they are still the best performing Canadian mutual funds family among Canadian banks.

I agree that the past is not predicting the future but you must agree with me that some Canadian Banks definitely know better how to manage investors’ money. In the upcoming post, we will provide more details about different mutual fund asset class.

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Posted on Friday, 15th January 2010 by admin

In my previous article about high yield spread, I was explaining that it is the right timing to trade high yield bonds when there is an abnormal spread between the corporate yields and the federal bond yield. Some of you may think you obviously missed a great trading opportunity in 2009.

In fact, the high yield spread is now similar to the one observed back in 2007. This means that the panic we went through in 2008-2009 is over and the investors are now giving more value to the corporations and fear less to see them default their loan (bonds).

The demand for corporate bonds in 2009 was higher than the offer. Since the economy and the credit facilities have greatly improve as well, the high yield spread started to shrink back to a normal level. In addition to that, default payments were drastically dropping (1 case only in December 2009).

Back in 2009, the high yield bonds was one of the best performing asset class according to Merrill Lynch.

While the spread is getting smaller, there is still a trading opportunity. The high yield spread should decrease during the next 2 years. Most economists expect to see it shrink by another 100 basis point in 2010.

If the unemployment rate starts decreasing and the economy is rolling back, the bond value will follow the same trend and the yield spread will diminish. This is why there is still a trading opportunity in 2010. However, don’t expect to make astronomic yield as it was the case in 2009 (more than 30% for the high yield bond asset class).

If interest rates start going up, the high yield bonds might be the only bond class to show a positive results as their price doesn’t only fluctuate according to the rates, it also follow the stock market (as they are related to public companies).

Then again, instead of trading high yield bonds, I suggest to use ETF’s.

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Posted on Wednesday, 13th January 2010 by admin

There is a trading technique that allows you to trade on the high yield spread. This happens when there is a “panic” in the stock market and the junk bonds drop in value, increasing the yield spread between junk bonds and federal bonds.

What is a High Yield Spread?

The high yield spread is the difference in yield between federal bonds (which offer virtually no default risks) versus the yield on corporate bonds. High Yield bonds (also called junk bonds) are issued by corporations to finance their activities or purchases. However, since their balance sheet is not that great, they have to offer a higher yield to attract investors. This is why we call them High Yield Bond.

Here is an example: if a federal bond offer 3% for 5 years and a company needs financing, it may issue bonds offering a 6% yield. The difference (3%) is called the yield spread. Since the company represents more economic risks than the federal government, it has to offer a higher yield to compensate the investors and encourage them to invest in their bonds instead of the governments.

When the market panics, the High Yield Spread increase

high yield spread

As you can see in the picture above, the difference between provincial bonds / corporate bonds and federal bonds increase significantly during market crisis. If you look at the graph in 2008 (credit crunch) and 2002 (world trade center, Tyco, World com and Enron bankdruptcy), you can see that investors request much more yield to compensate the default risk than during good economic period.

The second observation to make is that the high yield spread reduces as the economy is growing (from 2002 to 2007). Therefore, you can find some great trading opportunities by following the high yield spread trend.

How to trade according to the high yield spread?

Instead of selecting your own high yield bonds by looking at company financial statements, you can buy ETF’s related to high yield bonds. Here are 3 major high yield bonds ETF’s on the US market:

JNK (SPDR Capital High Yield)

EMB (ISHARES JP Morgan Emerging Market Bond)

HYG (ISHARES High Yield Corp Bond)

You can trade those ETF’s in any brokerage account. The key point is to trade them when the high yield spread is very high and wait until the economy comes back.

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Posted on Wednesday, 25th November 2009 by admin

Distorted IEA Oil Reserve Figures Create Biofuel Opportunities In “White Gold” Region of Central Asia

The recent revelations of a International Energy Administration whistleblower that the IEA may have distorted key oil projections under intense U.S. pressure is, if true (and whistleblowers rarely come forward to advance their careers), a slow-burning thermonuclear explosion on future global oil production. The Bush administration’s actions in pressuring the IEA to underplay the rate of decline from existing oil fields while overplaying the chances of finding new reserves have the potential to throw governments’ long-term planning into chaos.

Whatever the reality, rising long term global demands seem certain to outstrip production in the next decade, especially given the high and rising costs of developing new super-fields such as Kazakhstan’s offshore Kashagan and Brazil’s southern Atlantic Jupiter and Carioca fields, which will require billions in investments before their first barrels of oil are produced.

In such a scenario, additives and substitutes such as biofuels will play an ever-increasing role by stretching beleaguered production quotas. As market forces and rising prices drive this technology to the forefront, one of the richest potential production areas has been totally overlooked by investors up to now – Central Asia. Formerly the USSR’s cotton “plantation,” the region is poised to become a major player in the production of biofuels if sufficient foreign investment can be procured. Unlike Brazil, where biofuel is manufactured largely from sugarcane, or the United States, where it is primarily distilled from corn, Central Asia’s ace resource is an indigenous plant, Camelina sativa.

Of the former Soviet Caucasian and Central Asian republics, those clustered around the shores of the Caspian, Azerbaijan and Kazakhstan have seen their economies boom because of record-high energy prices, while Turkmenistan is waiting in the wings as a rising producer of natural gas.

Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical isolation and relatively scant hydrocarbon resources relative to their Western Caspian neighbors have largely inhibited their ability to cash in on rising global energy demands up to now. Mountainous Kyrgyzstan and Tajikistan remain largely dependent for their electrical needs on their Soviet-era hydroelectric infrastructure, but their heightened need to generate winter electricity has led to autumnal and winter water discharges, in turn severely impacting the agriculture of their western downstream neighbors Uzbekistan, Kazakhstan and Turkmenistan.

What these three downstream countries do have however is a Soviet-era legacy of agricultural production, which in Uzbekistan’s and Turkmenistan case was largely directed towards cotton production, while Kazakhstan, beginning in the 1950s with Khrushchev’s “Virgin Lands” programs, has become a major producer of wheat. Based on my discussions with Central Asian government officials, given the thirsty demands of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have great appeal in Astana, Ashgabat and Tashkent and to a lesser extent Astana for those hardy investors willing to bet on the future, especially as a plant indigenous to the region has already proven itself in trials.

Known in the West as false flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is attracting increased scientific interest for its oleaginous qualities, with several European and American companies already investigating how to produce it in commercial quantities for biofuel. In January Japan Airlines undertook a historic test flight using camelina-based bio-jet fuel, becoming the first Asian carrier to experiment with flying on fuel derived from sustainable feedstocks during a one-hour demonstration flight from Tokyo’s Haneda Airport. The test was the culmination of a 12-month evaluation of camelina’s operational performance capability and potential commercial viability.

As an alternative energy source, camelina has much to recommend it. It has a high oil content low in saturated fat. In contrast to Central Asia’s thirsty “king cotton,” camelina is drought-resistant and immune to spring freezing, requires less fertilizer and herbicides, and can be used as a rotation crop with wheat, which would make it of particular interest in Kazakhstan, now Central Asia’s major wheat exporter. Another bonus of camelina is its tolerance of poorer, less fertile conditions. An acre sown with camelina can produce up to 100 gallons of oil and when planted in rotation with wheat, camelina can increase wheat production by 15 percent. A ton (1000 kg) of camelina will contain 350 kg of oil, of which pressing can extract 250 kg. Nothing in camelina production is wasted as after processing, the plant’s debris can be used for livestock silage. Camelina silage has a particularly attractive concentration of omega-3 fatty acids that make it a particularly fine livestock feed candidate that is just now gaining recognition in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and competes well against weeds when an even crop is established. According to Britain’s Bangor University’s Centre for Alternative Land Use, “Camelina could be an ideal low-input crop suitable for bio-diesel production, due to its lower requirements for nitrogen fertilizer than oilseed rape.”

Camelina, a branch of the mustard family, is indigenous to both Europe and Central Asia and hardly a new crop on the scene: archaeological evidence indicates it has been cultivated in Europe for at least three millennia to produce both vegetable oil and animal fodder.

Field trials of production in Montana, currently the center of U.S. camelina research, showed a wide range of results of 330-1,700 lbs of seed per acre, with oil content varying between 29 and 40%. Optimal seeding rates have been determined to be in the 6-8 lb per acre range, as the seeds’ small size of 400,000 seeds per lb can create problems in germination to achieve an optimal plant density of around 9 plants per sq. ft.

Camelina’s potential could allow Uzbekistan to begin breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has warped the country’s attempts at agrarian reform since achieving independence in 1991. Beginning in the late 19th century, the Russian government determined that Central Asia would become its cotton plantation to feed Moscow’s growing textile industry. The process was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were also ordered by Moscow to sow cotton, Uzbekistan in particular was singled out to produce “white gold.”

By the end of the 1930s the Soviet Union had become self-sufficient in cotton; five decades later it had become a major exporter of cotton, producing more than one-fifth of the world’s production, concentrated in Uzbekistan, which produced 70 percent of the Soviet Union’s output.

Try as it might to diversify, in the absence of alternatives Tashkent remains wedded to cotton, producing about 3.6 million tons annually, which brings in more than $1 billion while constituting approximately 60 percent of the country’s hard currency income.

Beginning in the mid-1960s the Soviet government’s directives for Central Asian cotton production largely bankrupted the region’s scarcest resource, water. Cotton uses about 3.5 acre feet of water per acre of plants, leading Soviet planners to divert ever-increasing volumes of water from the region’s two primary rivers, the Amu Darya and Syr Darya, into inefficient irrigation canals, resulting in the dramatic shrinkage of the rivers’ final destination, the Aral Sea. The Aral, once the world’s fourth-largest inland sea with an area of 26,000 square miles, has shrunk to one-quarter its original size in one of the 20th century’s worst ecological disasters.

And now, the dollars and cents. Dr. Bill Schillinger at Washington State University recently described camelina’s business model to Capital Press as: “At 1,400 pounds per acre at 16 cents a pound, camelina would bring in $224 per acre; 28-bushel white wheat at $8.23 per bushel would garner $230.”

Central Asia has the land, the farms, the irrigation infrastructure and a modest wage scale in comparison to America or Europe – all that’s missing is the foreign investment. U.S. investors have the cash and access to the expertise of America’s land grant universities. What is certain is that biofuel’s market share will grow over time; less certain is who will reap the benefits of establishing it as a viable concern in Central Asia.

If the recent past is anything to go by it is unlikely to be American and European investors, fixated as they are on Caspian oil and gas.

But while the Japanese flight experiments indicate Asian interest, American investors have the academic expertise, if they are willing to follow the Silk Road into developing a new market. Certainly anything that lessens water usage and pesticides, diversifies crop production and improves the lot of their agrarian population will receive most careful consideration from Central Asia’s governments, and farming and vegetable oil processing plants are not only much cheaper than pipelines, they can be built more quickly.

And jatropha’s biofuel potential? Another story for another time.

This article was submitted by www.OilPrice.com who focus on Fossil Fuels, Alternative Energy, Metals, Oil Prices and Geopolitics. To find out more visit their website at: http://www.oilprice.com

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Posted on Wednesday, 18th November 2009 by admin

While many Western investors remain fixated on somehow acquiring a slice of Turkmenistan’s natural gas riches, despite a recent scandal over the country’s actual reserves, there is another country further east whose energy and mineralogical reserves have been overlooked – Uzbekistan.

While a number of factors are responsible for this oversight, including relative geographical isolation (Uzbekistan, along with Liechtenstein, is one of the world’s doubly landlocked nations, requiring crossing two other nations to gain access to the oceans), which currently limits energy exports available for the global market, there are a number of pluses that the country has for investors willing to “think outside the box.”

With a population of 27 million, Uzbekistan is Central Asia’s most populous and dominant power. A conservative fiscal policy since 1991, including inconvertibility of the national currency, the som, has shielded its citizens from the hyperinflation that ravaged other former Soviet republics, but the policy previously diminished potential foreign investment.

Since the global recession that began a year ago, however, Uzbekistan’s fiscal conservatism, previously dismissed by the foreign investment community, has looked more and more like a pragmatic policy that isolated the country from the worst aspects of the recession in stark contrast to other post-Soviet states that fervently embraced free market capitalism like Lithuania, whose economy contracted 18.1% this year and is expected to shrink further by 3.9% in 2010. In a move certain to be welcomed by foreign investor Uzbekistan is slowly moving towards making its currency convertible but whenever it happens, for the present the country offers a fiscal stability unmatched by many of its more free-market neighbors.

And now, the good news about the country’s resources. In 2006 Uzbekistan’s natural gas reserves were estimated at 1.798 trillion cubic meters (tcm). During the Soviet era Uzbekistan was the USSR’s third-largest producer of natural gas, accounting for more than 10% of the Soviet Union’s production, trailing only Russia and Turkmenistan. In 1992, the country’s first year of independence, Uzbekistan produced 42.8 billion cubic meters (bcm) of natural gas. Uzbekistan currently produces 60 bcm of natural gas annually, an amount nearly equal to Turkmenistan’s production. Uzbekistan’s reserves are primarily concentrated in Qashqadaryo province and near Bukhara in the country’s south-central region. During the 1970s Uzbekistan’s largest natural gas deposit at Boyangora-Gadzhak was discovered in Surkhandaryia province north of the Afghan border.

Unlike its energy-rich neighbors to the West, Kazakhstan and Turkmenistan, nearly 80 percent of Uzbekistan’s production, about 48.4 bcm, is currently reserved for domestic use at heavily subsidized rates. Of the remaining 12 bcm of natural gas that Uzbekistan exports, more than half currently goes to Russia, with the remainder to neighboring Central Asian states.

Under Uzbekistan’s fiercely patriotic President Islam Karimov relations with Europe’s favorite bête noire, Russia’s state-owned gas firm Gazprom, have been subject to fierce negotiations to win an equitable price for the country’s exports. Like other former Soviet republics, the Uzbek government chafed under Gazprom’s “buy cheap, sell dear” policies and in early December 2008 scored a significant negotiating success by getting an agreement that in 2009 Gazprom would pay $305 per thousand cubic meters (tcm). To put the accomplishment in perspective, Uzbekistan’s state gas company Uzbekneftegaz sold gas to Gazprom for $130 per tcm in the first half of 2008, which then rose to $160 in the second half of 2008.

Those betting on the eventual pacification of Afghanistan and the subsequent pipelines that would crisscross the country to deliver Central Asian gas to the massive Pakistani and Indian markets would also do well to take note of Uzbekistan’s persistent, low key policies over more than a decade attempting to bring peace to its hapless southern neighbor. The initiatives put forward by Uzbek President Islom Karimov during the NATO summit in Bucharest in April 2008 take on heightened importance as one of the few foreign policy ideas offering some hope to quelling Afghanistan’s three decades of turmoil. The text of Karimov’s address is at http://www.jahonnews.uz/eng/sections/politics/address_by_president_of_the_republic_of_uzbekistan_he_mr_islam_karimov.mgr.

Nearly completely overshadowed by the Bush administration’s relentless efforts to have Georgia and Ukraine join the alliance, Karimov proposed that the UN’s Afghanistan “6 plus 2″ assembly, established in 1999, be revived by expanding it into a “6 plus 3″ ensemble by including NATO because of its anti-terrorist operations in Afghanistan among the “six” members Uzbekistan, Tajikistan, Turkmenistan, Pakistan, China and Iran and the “two,” the United States and Russia.

Noting that that it is impossible to solve Afghanistan’s problems without the direct involvement of neighboring countries, which have felt the destructive impact of the Afghan crisis for more than 30 years, as Afghanistan’s problems are now of global nature, Karimov told his audience in Bucharest that their resolution must also be global, with the participation of members of the international coalition that comprise NATO’s International Security Assistance Force (ISAF). Karimov concluded by noting that the current situation in Afghanistan precludes a purely military solution and that while it is possible to continue increasing the foreign military presence there, without a clear model of national reconciliation it will be impossible to end the conflict.

Needless to say, one of the benefits of peace and the aforementioned pipelines for Uzbekistan would be that it could export its surplus gas through Afghanistan to southern Asian markets for a higher price than it receives at home or Gazprom’s miserly accountants. Acting on Tashkent’s belief that economic assistance is of greater utility than military operations, Uzbekistan has become involved in a host of reconstruction projects in Afghanistan, including railways, power generation, mining, agriculture, irrigation, education and the exchange of specialists as well as providing its neighbor with construction materials, metals, fertilizer, food and other goods. Uzbek companies and engineers have built 11 bridges in the Mazar-e-Sharif-Kabul area and are finishing the construction of a 275-mile high-voltage line capable of transmitting 150 megawatts from Termez to Kabul across some of the world’s most mountainous terrain, which when it becomes fully operational next month, will provide power and light not only to the capital but the country’s five northern provinces.

For now, Uzbekistan remains largely a transit country rather than a net energy exporter in its own right. But the fiercely independent nationalist policy that Tashkent has followed since 1991 indicates that any company whose policies most benefit the country will have an inside track, and as the old saying goes, “fortune favors the bold.” Chinese, Malaysian, Russian and South Korean companies have already begun investing in Uzbekistan’s energy infrastructure – what do they seemingly know that American and European companies do not?

This article was written by John C.K. Daly for OilPrice.com – Who offer free information and analysis on Energy and Commodities. The site has sections devoted to Fossil Fuels, Alternative Energy, Metals, Oil prices and Geopolitics. To find out more visit their website at: http://www.oilprice.com

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Posted on Monday, 16th November 2009 by admin

After hitting our first upside target of $1,110 two days ago, gold prices backed off but still managed to close at their best levels today for a new record high close in New York basis the spot gold.

There are several people who think hedging against (potential) upcoming inflation is the best investment to do. Investors fears another inflationary period as we lived during the 80’s.  If it’s the case, buying gold (through gold ETF?) maybe a great solution.

The question now is, what’s going to happen to gold after it hit our first target level?

The main trend continues to be positive and I believe that any pullback in this market should be met with good support. It is possible that we could see a pullback of $20-$25 which would not change the overall positive trend of the market which we see continuing until the end of the year.

As readers of this blog know, we have an upside target zone of $1,250-$1,300 an ounce for gold (I bet the president of Barrick Gold thought the same way when Barrick issued for billions of debts in order to buy back previous gold contract at $900 an ounce). While that target zone is still in place, we believe that the huge “energy field” that we’ve discussed in our earlier gold videos is capable of pushing this market higher.

In this new video I explain some of the areas that I’m looking at and also some of the places where you can place tight stops to lock in profits.

As always the videos are free to watch and there is no need to register. I would love to hear your views on gold in our Trader’s Blog comment section.

If you are looking to trade Gold, I suggest you look at the list of the Best ETF Gold.

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