Stopped out of GLD
by Charles Meek
October 20/05
Dow Jones Industrial Average 10,278
Value Line Arithmetic Index 1,766
30-Year Treasury Index 4.67%
Gold 1/10 Ounce $46.36
The Big Picture for Stocks
The 4-year cycle is negative.
Technical Trendicator (1-4 month trend):
Stock Prices Down
Bond Prices Down
Gold Price Down
It didn’t take long to get stopped out of our gold position per
last night’s letter! Our stop was hit not long after the opening
this morning at 46.36. We initiated the trade on July 25, 2005 on the
long side at 42.51. So we made 9.06% over 86 days, for an annualized rate
of return of 38.44%
I suggest remaining long in the mining shares on our Special Situations list. All of them appear to be significantly undervalued versus assets. And this pullback in gold should be temporary.
This positive trade actually hurt our record. But the annualized rate of return on all closed positions from the Special Situations list remains in excess of 100% per annum.
Charles Meek
MeekMarketModels.com
Mr. Meek is a Registered Investment Advisor. He is the editor of MeekMarketModels.com and manages Persimmon Capital Partners, L.P. a Texas hedge fund.
Meek Market Models, Inc. does not guarantee the accuracy
or completeness of this report, nor do we assume any liability for any
loss that may result from reliance by any person upon any such information
or opinions. Such information and opinions are subject to change without
notice and are for general information only. In making any investment
decision, you will rely on your own review and examination of the facts
and the records relating to such investments. Trading the market is extremely
risky. Our suggestions are often very speculative and not suitable for
many investors. Past results are not indicative of future returns. Meek
Market Models, Inc.