The master of hype, who I still think has great insight, Jim Cramer of the Street and MadMoney fame spoke highly of Gold yesterday. I wish he would have touted Freeport MacMoran FCX, but did not, most likely since it was not a pure play. He reiterated many of the same that have made me long both FCX and OIH. I like the FCX chart patter better, since it has had time to base out. No matter what he or other people say, technicals have a strong place in trading. There is a reason candlestick patterns have work thousands of years and the same techniques worked for Dutch Tulip Traders. The psychology of Trading stays the same.
I wish I would have sold the FCX calls according to plan since it did not break 30, but not being a full time trader made that one tough. I like my OIH position and might still add to it if it hit the 67 area. I still am short the 80 March 09 Calls at 2.12 a contract.
If we gap up today I am going to use the first ten minute bar as a placeholder. FCX breaks that down, I will sell the 30 calls. If it breaks it up I will gauge the days action from there.