Zak Mir – Hollywood, gold and being as good as your last call!
Apparently in Hollywood you are only as good as your last film, and it would appear that in the financial markets only as good as your last call. In fact, I am reporting back on the last three calls here, not as a trumpet blowing example, of which there are too many all over the place, but what the goal is as far as making short term recommendations.
Last week, in the wake of the Bernanke Testimony, the markets essentially moved back to “risk on” mode given that ol “Helicopter” had fudged the end of QE, yet again… But, it seems that traders apparently needing to allow a little time for this realisation to sink in. This meant that both Gold and the Euro were potential bottom fish opportunities – on a fundamental & technical basis, and it was also worth taking a punt on Gold stocks.
Last week’s blogs therefore featured the hourly charts of both Gold and the single currency, and then on Friday a tip for Randgold Resources (RRS) on its daily chart with the now legendary “Eve & Adam” bullish reversal formation. Indeed, Randgold was propelled higher today with the help not only of the Gold break – which it was chosen as a proxy for, but also the double buy notes today from JP Morgan and Morgan Stanley. Obviously, these brokers cannot help being behind the curve versus the Friday call on the Spreadbet Magazine blog! For Gold the charting signal was a W shaped reversals, with neckline support at $1,269 – which held well. On the Euro’s hourly chart last we saw an extended inverted head & shoulders formation which neckline support here at $1.30 – to target $1.32 and now onto $1.34.
The good thing about all three recommendations is that, at worst, they only went back from the bull call levels on a marginal basis, and then delivered their upside within just 2-3 sessions. There was no long wait, and especially in the case of the Gold buy – which was also in our new “Zak Was The Week That Was” weekend update (shortly available on email only so make sure you are registered via the subscribe box at the top right of this page), occurred right off the bat from the point the markets opened on Sunday eve, a few hours after publication.
And this is really the point. While it is usually very difficult to do so, the key to all recommendations is clarity and timing. It is worth noting those occasions when these factors work well in order to replicate this as much as possible going forward while acknowledging that even at the best of times this is one of the biggest challenges around and of course there is an element of luck involved.
I hope our readers made hay like us on these calls. For my top 10 AIM picks, click the image below for your free guide.
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