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Gold Seasonal Trading Strategies

Gold Seasonal Trading Strategies. Presented by: Louis Paquette Publisher, EGS www.emerginggrowthstocks.ca. Gold Seasonal Trading Strategies. Question: In ONE WORD, what is the biggest challenge facing stock market investors and speculators?. Gold Seasonal Trading Strategies. UNCERTAINTY

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Gold Seasonal Trading Strategies

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  1. Gold Seasonal Trading Strategies Presented by: Louis Paquette Publisher, EGS www.emerginggrowthstocks.ca

  2. Gold Seasonal Trading Strategies • Question: In ONE WORD, what is the biggest challenge facing stock market investors and speculators?

  3. Gold Seasonal Trading Strategies UNCERTAINTY • Over: • Overall market conditions • Interest rates • Commodity prices • Specific company performance • Government intervention • Odds of discovering a mineable economic deposit • Competition • Etc.

  4. Gold Seasonal Trading StrategiesSo what is certain? • Stock rise an average 7% per annum over time, but not consistently • There is a rhythm to asset price movement (cycles) from overbought to oversold, from overly optimistic to overly pessimistic • A contrarian can take advantage of this to boost returns and reduce losses Optimism Pessimism Stocks

  5. Gold Seasonal Trading Strategieshas strong annual seasonal cyclical tendencies Gold

  6. Gold Seasonal Trading StrategiesOnce Gold is overbought – it always returns to the moving average

  7. Gold Seasonal Trading StrategiesHUI Index Another strong tendency: Gold strength seems to alternate from year to year. Strong Weak Strong Weak Strong

  8. Gold Seasonal Trading StrategiesAn aggressive way to play the cycleHorizon BetaPro ETFs HGD & HGU Buy HGD anytime now on dips (on rallies in gold price) sell this summer

  9. Gold Seasonal Trading StrategiesAdvantages of Horizon’s ETF’s • Go Long or Short (“U” UP or “D” Down) • I.E.: HGD or HGU • Shorting and leverage without the hazards of short selling or options & futures • 2 X Leverage • If Gold moves 2% down, • HUI 4% • HGD 6%

  10. Gold Seasonal Trading StrategiesThis summer: Sell HGD, Buy HGU

  11. Gold Seasonal Trading StrategiesExample of the leverage: 1-Day return using the HGU.TSX ETF on Jan 2,2008

  12. Gold Seasonal Trading Strategies5 month returns *All in Rounded numbers The HGU.TSX ETF clearly delivers superior returns

  13. Gold Seasonal Trading StrategiesHGU vs. Other Gold ETFs 5 month returns

  14. Gold Seasonal Trading StrategiesSpecific Suggested trades • Buy HGU (Horizon Gold UP) • At Cycle Bottom (June to August) • Sell at Cycle Top (Feb to May) 2. Buy HGD (Horizon Gold DOWN) • At Cycle Top (Feb to May) • Sell Cycle Bottom (June to August) Web Site: www.hbpetfs.com/hgu.asp

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