Happy New Year! This has been one of the most interesting years in my 25 years in the Financial services industry. I delayed publishing this week’s comments because I wanted to crunch the numbers for 2008 before we put forth a strategy for 2009 and beyond. Gold, although higher earlier in the year, still managed to notch a 5.5% return in 2008. We managed to do significantly better because we take both long AND short positions as the trends change. But make no mistake. The long-term bull trend in GOLD is intact! I happen to believe that the next 24 months could bring new all-time highs in Gold as the fragile financial system fails to respond to massive injections of cash via the unprecedented government bailouts that have been proposed. This will lead to new lows in the Dollar, a continued decline in consumer confidence, a deep and prolonged recession (or Depression) and a major rally in Gold as the focus moves swiftly to stores of value that stocks and bonds can not give.
I’ve been criticized in the past for my writing style regarding the markets. Some believe that I should try to be more “entertaining” when I try to explain the way markets move from a technical perspective. Let me say this right up front. I’m not interested in entertainment. If I want entertainment I go Vegas. When it comes to the markets I’m only interested in one thing- Making money! Unless you are familiar with my work and my track record you may find it difficult to develop and execute a trading plan based solely on my opinion in this blog. As a matter of fact, the development and implementation of a trading plan is the toughest thing for most investore to do and even more difficult for the novice trader. On November 13th when Gold futures were trading just south of $700, I stated in a story on Marketwatch.com that I expected Gold to rally back to the $900 mark. On Monday, FEB Gold futures hit $892.00. Now, you might be inclined to say that I missed the mark. And, you’d be right. All I know is that I came close enough to my mark to bank some serious profits as Gold rallied to the close of 2008. And that, my friends, is what trend following is all about. The major trend in Gold is UP and this leg of the move may be the most impressive. So, take a portion of your investable dollars and invest it in Precious metals. If I’m right, you’ll be smiling at this time next year.
I will add an additional segment to this blog after the close tomorrow as we look at charts on Platinum and Palladium and explore the profit potential of these markets as well.
I wish you all the best in 2009!
Dale F. Doelling, Chief Market Analyst
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(”SFF-CORP”) and NOT Castello Cities Internet Network, Incorporated. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. This report includes information from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made and we do not guarantee its accuracy or completeness. Any reproduction or retransmission of this report without the express written consent of Secure Future Financial Corporation is strictly prohibited. Again, the information and comments contained herein is provided by SFF-CORP and in no way should be construed to be information provided by Castello Cities Internet Network, Inc. Copyright © Secure Future Financial Corporation.
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