Interesting. Today the stock market soars and Gold, true to form, sucked in johnny come lately’s who bought the top. I knew this morning when I saw the headlines in the business section crowing that the $1600 level had been breached that it was a good sale. If I hadn’t already been short, I would have sold more. But I had my position on and just sat with it.
Now, let me be clear, 6 months from now we may be at gold $2,000.00 The trend is certainly bullish over many many months. In the mean time, Gold settled today at 1589, after trading down to 1583.00 Tomorrow is Wednesday. If we don’t get going higher soon, we could have a nice pull back down in gold to the 1560 level and then 1544, finally i would cover shorts at 1530.
Right now we have a profitable trade. I have insured that we won’t lose money on the short position because I have placed protective buy stops above to insure that fact.
As for the Dow long position I have, we got a nice bounce today. We look poised to climb the wall of worry higher now…
Everyone who got negative and short thinking we were going to go the way of Greece or Russia back in the 90’s defaulting on our debt.. I think we punish those bears with a rally right up the wazoo.
The Dow never got its double from the 2009 lows at 6470 in March of 2009. 12,940 is the double. We got to 12,876 just 2 months ago!! That would be a new 3 year high, and the perfect punctuation to a rally that “made no sense” from a common sense point of view.. Economy? Sluggish… Taxes? ….Rising … Government? Getting Bigger. Unemployment?… stubbornly high between 9 and 10 percent officially. Yet we rally. Granted we have had corrections. Some so big that you have had pundits calling for the second leg down or a new nastier great depression.
I love it when I hear that talk. It means the lows are probably in. Probably, i say, because you never know. I think in general though, when CNBC brings out the Dow 50,000 people again.. that’s when I’ll get really scared.
I see us going back to get those last 64 ticks to get the double. Then I want to sell it. We got the double in the S&P, and then we plummeted. I think we have to go get that double in the Dow Cash.
Quickly, here, Dec Cotton was limit bid today, bouncing off the psychologically important $100.00/lb level yesterday. After a 1/3 drop in value, I really like nibbling on a small long position here.
CER