Gold Miners – Swing Trade Setups – Agnico-Eagles Mines, Freeport McMoran, and Goldcorp
The CBOE Gold Index ($GOX) is an index of 10 companies involved in gold mining and production. A chart of this index shows a very strong price level which has been influential in price moves for nearly 10 years. Currently this index is very close to support and warrants a deeper investigation into some of the core components of this index.
 (CBOE Gold Index – Multi Year Chart)
The charts below are stocks that I have screened and selected as having the best potential for a swing trade on the long side. These are NOT investments here, simply swing trades to hold for whatever can be milked out of these trades. I recommend using a trailing stop to protect your profits after your gains on the trade reach 6%. By switching to a trailing stop you can protect your profits as best as possible.
I still maintain that Gold is going to be a commodity that benefits from the global credit crisis. The only thing that threatens this thesis is if more and more large holders are forced to liquidate their holdings as they are forced to meet redemption requests or need capital. These are not risk free trades. Any trade has elevated risk in this rapidly unfolding financial mess.
The following stocks are worth considering for swing trades…
 (AEM)
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 (FCX)
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 (GG)
Chuck – would GDX be simpler for a lazy trade on this ?
Murph…
I don’t like the ETF because I went through all of the miners and producers. It was only a select few that I liked which are the ones I presented. I feel the ETF may not react as well as the few individual companies I selected may.