Gold Continues its decline

Gold breaks through the $1600 key support level (see previous chart post in blog) with a well formed triangle which then formed the resistance level for a very short period. It then continues its decline to $1500 after consolidating through March April.  It then continues again to decline significantly with big falls.  I would keep well away from this falling knife commodity until it settles, probably around $1200.

Trading - Income Shares using O'Higgins Method

The O'Higgins Method buys high yield/dividend income shares of leading companies with a low price.  You can use either the Dow shares or FTSE30 for a selection.

If you use this method for a UK selection of shares you would be buying the following 5 shares and holding them for at least one year.

BP, BT, HSBC,TESCO and VODAFONE. These shares have the approximate respective dividend yields of 5%, 3.5%, 4.8%, 4.5% and 5.5%.

The next Ex. Dividend dates for the above are 7th November, 8th August, 24th October, 25th April and 6th June 2013 respectively.

Trading - Exchange Traded Funds / Commodities

ETF securities can be less volatile way of trading either commodities, currencies or instead of a single stock or share a sector such as healthcare.  You can find out about many of these ETF's or ETC's by visiting the web link below.

ETF SECURITIES

Access to this information is free and gives you for instance in grouped stocks or commodities the constituents of the ETF or ETC.  It also gives the small investor access to previously limited access to certain commodity or currency trading that was the preserve of major institutions etc.

Trading Chart - JP Morgan

It looks like the uptrend has been broken.

Yahoo Chart