Gold is down 4% today and the Gold Miners down even more. The sell-off was initiated by stories out of Europe that Cyprus would be forrced to sell 40t of gold to fund its bailout, and that other European countries might follow suit. Barrick Gold (ABX.TO) is down 7.6% today. I am betting on a reversal and think that this is a good entry point.
- BUY ABX.TO @ $23.10
Writing today, 15th April, this has been a terrible trade. ABX.TO has been down up to 12% this morning. Normally I would sell a speculative stock if it fell by 5% since purchase but there was no such opportunity here as ABX.TO opened down 7%. I sold at an 11% loss.
- SELL ABX.TO @ $20.57
Writing a month later, on 17th May, selling this stock was a good move. The stock closed at %18.58 today.