Wednesday, December 23, 2009

Intraday Review: AUY & RIMM

As I highlighted yesterday on the dollar/gold, I'd held to my call of $1075 Gold, as an accumulating point. I have also been targeting my favorite gold stock,Yamana (AUY) suggesting adding or buying as it neared $11.00. ~link~...Well yesterday gold's intraday low was $1074.53 & Yamana's intraday low $11.05!
As I type Gold is @ $1094, Dollar 77.94 & AUY $11.78

I drew up some charts this morning, running a 50 EMA & 200 EMA...note the breakout over 50-ema resistance and now encountering resistance at the 200 EMA? This morning the dollar sold off on the negative November New Home Sales >read

Now not just Yamana is rallying here, so are SLW, FCX & HL, which also hit my $6.00 buy objective yesterday. That said this rally could see some pullbacks to retest the recent lows, there could still be more upside for the dollar towards the 79+ level/200-sma and retracement levels as highlighted in the above charts. This is why I suggested an accumulate on gold/silver and to look for confirmation. As markets transition into the new year we need to continue to watch what the Fed does with interest rates-or at least the markets perception of what they'll do.

Now to Research in Motion ( RIMM), the stock is volatile after 2 days of selling following a great earnings report. This is due to two-events, first, a short squeeze that caught some traders off guard and bought on the bullish report last week. Secondly, the outage last night, which is the 2nd this week and 3rd this month, caused by a software upgrade on RIM's messenger service. The bears are trying to bring this stock down, citing the downed service and highly competitive sector as negatives for RIMM. However, as I've written over the last several weeks and what the recent earnings reports indicates...RIMM is growing and presents an good value relative to other competitors. The move into "smart phones" is going to be huge in 2010, with 40% of North America owning smart phones and only 18% globally, the pie is growing and there is room for competition. Use the pullback to buy/add to position.

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