Tuesday, June 10, 2014

AU, Reading the Tape

Agnico-Eagle has pulled back recently. I have a small recent position and am waiting for some buying enthusiasm to come back before adding to my position.

Today the price of AU broke to a several day high. But the enthusiasm did not get high, as evidenced by the volume on the new highs. So just the fact of a new high in price does not get me bullish on the stock. To the contrary, it may need to go down some more before substantial people think it is a good buy.
Or it may drift up and the volume will come in at new longer term highs due to the many who may think they are missing something.

In any event there is not any reason at this time to add to a position in this stock from a strictly speculative standpoint.

And that is what "reading the tape" is to me. I am often wrong, but somewhere in the averages I seem to come out ahead, so I must have an edge there somewhere.

Keep it simple, Stupid.
That is what I often tell myself. Right before I remind myself not to BE Mr. Stupid!

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