Last week I did a deep dive on Equinox Gold, when it closed at $10.40, and I said:
Target price $15, with $20 possible by the end of the year.
I’ve got buy orders in at $10, with stink bids at $8.50 in the event of a market collapse.
EQX.TO – Equinox Gold Corp. closed yesterday at $10.90, and traded as high as $11.50 during the week, so while that is great news, there was no opportunity to get any stink bids filled, so we’ll wait. I may ponder increasing my $10 bid slightly, but not yet; let’s see how the week goes.
Of equal interest is the bizarre price action in Tesla. The stock actually hit $547 this week. That’s amazing for a company that has never made a profit, and has no hope of ever making a profit, and only exists due to government subsidies, which other than in China are being reduced or eliminated.
I couldn’t help myself, so on January 14 I bought 3 contracts of the Fe $450 puts, for $14.60, and then sold them on January 16 for $22.70, for a profit of around $2,400. I realize that the fanboys may drive this fancy golf cart to $5,000 a share, so I’m not holding a short position for any length of time (I’ve been burned enough already), but when I see an RSI up in the 90 range I can’t help myself. Hopefully this gets it out of my system and I can ignore it going forward. If Tesla tests $550 again but can’t break through it I’ll buy more puts, because again, I just can’t help myself.
That’s the update. More next week.
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How will China Impact the Market?
by JDH on January 25, 2020
As I write this on Saturday morning, January 25, 2020, the coronavirus spread is accelerating in China, and that’s not good news.
Gold was trading at $1,546 on January 21, and sits at $1,571 now, so it would appear that speculators are moving to gold for protection against whatever may happen next.
Needless to say, my gold holdings did very well this week.
Interestingly, Tesla, with the big factory in China traded as low as $505 this week and closed at $564, so apparently no-one in Tesla-land is worried about China (although the stock did peak at $595 in the middle of the week, so we’ll see how it progresses next week).
Apple, also with big production in China, bounced around this week but ended the week slightly higher, so no sign of any direction there.
Impeachment Theatre also appears to be a non-event, but we shall see.
I continue to assume that the Fed will continue to print money to keep the markets high leading into the election, so owning the blue chips is probably safe, and I’ll continue to own gold.
That’s the quick update.
More next week, if anything actually happens.