THE MICIK MARKET LETTER
Gold Update

Alan Micik snippet
Posted Mar 7, 2012

“Beware the Ides of March.” - Soothsayer’s warning to Julius Caesar

In our January 30, 2012, 321gold Post, we observed that if you took the approximate high as $U.S, 1900, and the approximate low as $U.S. 1600, the middle ground was $U.S.1750 (about 169.50 for GLD), which was almost exactly where we were priced at that time. It was noted that this was important because it told us the weakest buyers of the last seven months were directly above the current price structure. Further, the highs of August, September, November and December exhibited high sentiment readings of over 90% bulls on some surveys.

Here is the GLD chart from that Post:

(Click on images to enlarge)

MML closed its “hedge” from early December around the first low in December. Note that when we covered our “hedge” in mid-December we in effect went long Mr. Gold Market by holding an “un-hedged” physical gold position. Then we forecasted a rally into late January / early February based on one of our proprietary cycles. Here is the current GLD chart:

At MML, our philosophy is to never sell one’s physical gold (we might not get it back!), but we do periodically “hedge” it when we identify an “extremely cautionary” scenario for our subscribers. There are “risks” in hedging, of course, but at this time, we have closed “hedging” profits of >$U.S.145 per ounce and have simultaneously retained our physical gold. We use Stops to protect ourselves from our own emotions whenever we “hedge” (via “deep-in-the-money Puts on GLD).

On March 4, 2012 (three trading days after Spot Gold dropped $U.S. 76.00) we wrote an in-depth Update on Mr. Gold Market, the $U.S., and U.S. stocks for our MML subscribers which will be summarized in a 321gold snippet on March 16th, near the “The Ides of March.” In deference to our subscribers, we have an 8 trading day “Quiet Period.” If you would like to review that Update now, do consider MML (details are listed below).

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Mar 6, 2012
Al Micik
email: atmmail@sbcglobal.net

The Micik Market Letter (MML) covers opportunities in any market sector when low-risk opportunities are identified for the investor and/or trader. Ongoing coverage is provided for gold and physical gold hedging strategies. Silver & GDX are periodically covered when low-risk opportunities occur. MML uses proprietary indicators combined with technical analysis, and contrary opinion. Unlike other market reports, we do not have regular “publication dates,” as the markets create the dates of action, and thus the communication to our subscribers. Individual shares in any sector are generally not covered, but nor are they excluded. By using baskets of stocks (ETF’s), we seek to decrease our risks and have improved liquidity when it’s time to exit a position. This enables us to use reasonable Stops, and we use them on every single trade in order to limit our own emotions. This is a new 2011 publication, but the editor has 36 years of market experience.

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321gold Ltd