Aggressive Strategy October 5, 2007:
The smaller capitalized gold stocks and those involved in exploration have been showing increased signs of investor interest. The daily share volumes have been slowly moving higher as the price of gold continues to trade at near $740.00 per ounce.
There are a number of analysts who are calling for gold to break out of the current range and move to new highs. The break out point appears to be $750.00 and if gold goes through this level on increased volume then investors should be adding to their gold positions in preparation for an extended run to the $850.00 or possibly higher. Generally when gold breaks out silver will not be far behind so silver producers and late stage exploration companies appear attractive over the short term as well.
The uranium market appears to be making a bottom with the spot price staying in around $75.00 a pound while the long term contract price is holding firm in the $95.00 range. It seems quite likely that with increased demand coming on line over the next few years that the price of uranium should move higher and uranium producers or those close to starting production are attractive.
The technology sector is showing increased strength as companies such as Research in Motion and Apple continue to make head roads in to the consumer market with the Blackberry and ipod devices. The strength in technology is in the consumer related stocks as the holiday shopping season starts to swing in to high gear over the next few weeks.
In the small capitalized segment of the technology sector there are very few consumer leaders and companies in the development stage not likely to see a surge over the next few months unless they are close to releasing a new consumer product. Companies focused on development of productivity enhancing technology may have to wait for investors to get excited about business expansions before they will see much investor interest. Be aware that the technology sector generally has an excess of capacity and any slow down in the US economy will dramatically impact this sector.
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