Roger Biduk - BAC Buys MER, US$ Drops, Metals Rise

Roger Biduk writes:

One big news story tomorrow will be the purchase of Merrill Lynch (MER) by Bank of America BAC).
You can read more about it here on my U.S. blog.

Another will be the bankruptcy of Lehman Bros. (LEH) if that happens. It hasn't yet as there still might be some kind of last-minute deal before midnight but it doesn't look good.

Currently, gold is up $22.50 or 2.94 and silver is up 4%. That should bode well for the gold stocks I mentioned in last Thursday's blog that were all up huge on Friday.
If Lehman does go under the US$ should drop and there should be a nice rise in gold.

Oil is down 2%, breaking the $100 mark to $99.39.

Roger Biduk's website

Roger Biduk's blog on the U.S. markets

rogerbiduk@rogerbiduk.ca

Roger Biduk - Gold Stocks Mentioned in Thursday's Blog Soaring

Roger Biduk writes:

As I wrote in Thursday's blog (see below), gold stocks were due for a rally as the price of gold had a huge drop after nine days in a row of declines.

Well, the gold stocks I mentioned had huge one-day gains on Friday: G +14.49%, YRI + 10.97%, K +10.88%, ABX +9.73%, ELD +6.31%, HBU +6.06% and HMB +3.75.

You'll get this type of action (especially in the commodity markets) after there's been huge losses or gains over a sustained period of time.

The risk reward on the trades above were definitely favorable, even though there are people out there talking about $500 gold coming up.
Only several months ago, I heard $2000 being thrown about....where are these people now?

Roger's Website

Roger's Investing Blog on the American Markets