Tuesday March 27, 2012
This morning I began placing a succession of orders to buy Central Fund CEF. The first order is at 21.97 and then I entered lower and lower orders. Here is a close up look at why this might work.
The thirty minute chart of CEF suggests higher MACD lows and a short, very short, term overbought situation. I am attempting to buy into CEF on a pullback. CEF is ahead of the stock market, it has not peaked on the MACD chart short term, this is typical as gold tends to lead stocks in market action.
In this overbought market there are very few bargains.
Earlier I recommended european utilities and telecoms which were at 52 week lows. As I predicted they are going up as they approach their annual dividend distributions. Check out VE and DTEGY. VE I have sold for a 45% gain in two months. I own DTEGY TEF and FTE. TEF and FTE are still cheap as they are farther from their ex div dates.
PGH and ERF are Canadian energy trusts trading near lows and pay monthly distributions like the natural gas trusts. Selling volume seems to be drying up on recent pullbacks and they have not gone up with the market. Also check out GDFZY,ECIFY and ENLAY all europe utilities at 52 week lows.
Posted by: Robert Takacs MD | March 27, 2012 at 12:59 PM