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Profit when Gold rises or falls with ETFs. Presented by: Louis Paquette Publisher, EGS www.emerginggrowthstocks.ca www.emerginggrowthstocks.blogspot.com. Profit when Gold rises or falls with ETFs *Chart Updates as of May 28, 2008* GOLD $923 May 26. 908.76 (50-day) 837.65 (200-day)
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Profit when Gold rises or falls with ETFs Presented by: Louis Paquette Publisher, EGS www.emerginggrowthstocks.ca www.emerginggrowthstocks.blogspot.com
Profit when Gold rises or falls with ETFs*Chart Updates as of May 28, 2008*GOLD $923 May 26 • 908.76 (50-day) 837.65 (200-day) • Gold retraces 50% of the move down from $1,000 to $850 $75 + $850 = $925
Profit when Gold rises or falls with ETFsHUI Index • Target: 375 (roughly 25 to 50 points below 200 dma)
Profit when Gold rises or falls with ETFsHGD • Picked in March Issue at $7.88 - $10.34 on May 28 • Target is: $14 - $16 - where it was when gold last traded at $800 to $850
Profit when Gold rises or falls with ETFsOur next Victim: Crude OilHOD $8.52 (May 28, 2008) Breaking the trend line….
Profit when Gold rises or falls with ETFsVisit out Blog www.emerginggrowthstocks.blogspot.com
Gold Seasonal Trading Strategies • Question: In ONE WORD, what is the biggest challenge facing stock market investors and speculators?
Gold Seasonal Trading Strategies UNCERTAINTY • Over: • Overall market conditions • Interest rates • Commodity prices • Specific company performance • Government intervention • Low odds of discovering a mineable economic deposit • Competition • Etc., etc., etc…
Gold Seasonal Trading StrategiesSo what is certain? 1. Patterns exit that one can profit from • 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 Optimism Pessimism Stocks
Gold Seasonal Trading Strategies2. Has strong annual seasonal tendencies Gold
Gold Seasonal Trading StrategiesOnce Gold is overbought – it always returns to the moving average
Gold Seasonal Trading StrategiesHUI Index Another strong tendency: Gold strength seems to alternate from year to year. Strong Weak Strong Weak Strong
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
Gold Seasonal Trading StrategiesAdvantages of Horizon’s ETF’s • Go Long or Short (“U” UP or “D” Down) • I.E.: HGDown or HGUp • Shorting and leverage without the hazards of short selling or options & futures • 2 X Leverage (they say. But really more) • If Gold moves 2%: • HUI 4% • HGD 6%
Gold Seasonal Trading StrategiesThis summer: Sell HGD, Buy HGU
Gold Seasonal Trading StrategiesExample of the leverage: 1-Day return using the HGU.TSX ETF on Jan 2,2008
Gold Seasonal Trading Strategies5 month returns *All in Rounded numbers The HGU.TSX ETF clearly delivers superior returns
Gold Seasonal Trading StrategiesHGU vs. Other Gold ETFs 5 month returns
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