It’s days like today that I live for; Barrick was up 31.31% over the course of today’s trading session, and I made over $6,500 today. It feels really nice.
I’m not a huge market technician, but I pick up a few tricks here and there. You look at a chart like that, and a technician would tell you that Barrick was in a trading range over the course of the month from lows in the $17’s to highs in the $25’s. Then, it suddenly breaks out in one huge burst on high volume, and the stock seems poised to go even higher. If you happen to have loaded up on the stock near the bottom of the trading range, then you’re suddenly transformed from a rational person into a spectator at a horse race: screaming, “GO, BABY, GO!”
Putting all that aside for a minute, I felt the whole week was pretty strong for Barrick. The stock market as a whole was reaching new lows over the last couple of days, but Barrick was holding steady in the low $20’s and not budging. That’s an encouraging sign because, as I wrote in prior posts, it indicates that the stock is starting to no longer follow the broader market trends. The reason I feel that’s important is because I feel that the overall stock market still has further to fall, while gold has nowhere to go but up.
Next week I’ll be interested to see if Barrick falls back into its old trading range or if it continues to move higher into a new one. Obviously, I would be elated if that happened. Here’s hoping Santa Claus is coming early.
Disclaimer: If anyone out there is stupid enough to follow what I’m doing with their own money and you end up with losses — don’t blame me. I’m not advised as to your situation and I’m certainly not legally in a position to be making recommendations to anyone.