Roger Biduk writes:
Goldbugs I've been speaking to are getting kind on antsy....gold's down 10 days in a row.
Time for me to look a few gold stocks for a short trade. HBU, YRI, K, G, ELD, ABX & HBM are the ones I'll look at.
The Toronto stock market ended the day higher after launching a fervent battle against deeper losses tied to uncertain oil prices, lower gold and a beaten down U.S. financial sector.
Toronto's S&P/TSX composite index closed up 115.61 points to 12,612.76 on Thursday after losing as much as 121 points earlier in the day.
The CDN$ was at 92.89 cents US, down 0.59 of a cent.
Falling crude prices have been a significant factor in driving down Canada's major stock market, which is heavily weighted to oil, gas and commodity companies.
The energy sector rose 1.5 per cent as oil prices slipped lower despite hurricane Ike's march toward oil platforms in the Gulf of Mexico.
The October futures contract for light, sweet crude slid $1.71 to end at US$100.87 a barrel on the Nymex, its lowest close since April.
Fears of a global economic slowdown have been offsetting concerns about whether hurricane Ike could harm refinery operations in the Gulf of Mexico, falling U.S. crude inventories and an OPEC decision to cut production by 500,000 barrels a day.
Ike, coming on the heels of last week's hurricane Gustav, was expected to blow ashore early Saturday somewhere in Texas between Corpus Christi and Houston, with some forecasts saying it could become a Category 4 storm.
Jennifer Dowty, a portfolio manager at MFC Global Investment Management said that she doesn't think crude prices will come anywhere close to US$80 a barrel - a benchmark used by many oil producers when planning their businesses.
"Because it's had such an aggressive pullback, we're going to see a reflex rally which could take it back up to $110 in the near term," she said.
Leading the TSX was the technology sector which climbed 2.5 per cent as Research in Motion (TSX: RIM.TO) rose $5.08 to $117.44. The company announced earlier in the day that it had inked a deal with Microsoft Corp. to carry its web search engine on BlackBerry mobile devices.
The gold sector lost 1.5 per cent, as the December bullion contract on the Nymex fell $17 to close at US$745.50 an ounce, marking its longest streak of losing sessions in eight years.
The TSX financial sector was up 0.5 per cent, and the TSX Venture Exchange ended 32.91 points lower to 1,563.82.
www.rogerbiduk.ca
rogerbiduk@rogerbiduk.ca
Thursday, September 11, 2008
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