Oils Up - Golds Reverse 042507

I’ve been discussing gold and oil stocks, so will continue with that theme tonight. U.S. oil inventory levels data provided the catalyst to take the OIH to an area not seen since May 2006. Gold stocks regained their bullish posture with a reversal bar on the XAU daily. As I mentioned yesterday, I thought they would reverse here. Here’s a trade in AU I took today, posturing myself for a move higher.

The buy signal came on a move above 45.97. I decided to use the pivot low as a stop, which gave R a risk of .15. My plan was to sell half at 2R and hold the rest as a swing trade, or get stopped at break even. As you can see, I ended up holding some AU. I also entered some MDG, and SSRI held on too.

I don’t hear much talk about gold stocks, even though gold is acting bully. It’s either because I’ve got CNBC on mute too much, or the news of the day is the Dow hitting 13k. Fine with me.