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A Big Feh.......
I quickly noted last night that gold crossed $900 around 2am. It hit a high of roughly $915 and came into NY around $910 and closed up about $7 giving up half it's gains. In other words, typical trading on the Crimex. The HUI at it's high was up about $14, and closed up $6. I was not thrilled with the action in the metal nor the stocks.
Hate to be a Debbie Downer, but IMO, this upward leg of the gold bull looks a tad tired and could prolly use a pullback or to base here for a little rest. The stocks especially, look tired. AEM was down .75, RGLD was down $ 1.07 GG and ABX were up a few pennies. This was not the type of action I wanted to see on a clear breach of $900.
Now on the other hand, many people are thinking like myself and are looking for a pullback. This in itself could propel gold higher, but I don't think so. Then again, I thought, that on Friday, when gold couldn't get through $900 it would sell off. So, what do I know.
The dollar got whacked again today for a couple of reasons. First, Bernanke is cutting rates and cutting them dramatically. (So much for the thought that cutting rates is good for the dollar. That was the reason given in December when the dollar was having a short covering rally.) And second, there is plenty of nervousness in front of the banks earnings which start this week. Somehow, the Street thinks it's very good when the largest banks and brokers on the Street are taking handouts from anyone in the world. I think this might come back and bite us in the ass.
So where are we going? Honestly, I hope down for a bit to clear off the gold bandwagon. It makes me nervous that everywhere I look all I hear or see is talk of $1000 gold. I imagine that CNBC will have a countdown ticker in the corner when it gets close. I liked it better when all you read or heard was that it was crazy to own gold. At least none of my non-financial friends are asking me about it--yet. I want the gold party to be exclusive as possible. A nice little shakeout will get rid of the riff-raff that has crashed the party.
Sorry for the short update, but I am tired. I was up late watching gold (exciting, huh!) and today I was very busy trading the gold stocks.
Hate to be a Debbie Downer, but IMO, this upward leg of the gold bull looks a tad tired and could prolly use a pullback or to base here for a little rest. The stocks especially, look tired. AEM was down .75, RGLD was down $ 1.07 GG and ABX were up a few pennies. This was not the type of action I wanted to see on a clear breach of $900.
Now on the other hand, many people are thinking like myself and are looking for a pullback. This in itself could propel gold higher, but I don't think so. Then again, I thought, that on Friday, when gold couldn't get through $900 it would sell off. So, what do I know.
The dollar got whacked again today for a couple of reasons. First, Bernanke is cutting rates and cutting them dramatically. (So much for the thought that cutting rates is good for the dollar. That was the reason given in December when the dollar was having a short covering rally.) And second, there is plenty of nervousness in front of the banks earnings which start this week. Somehow, the Street thinks it's very good when the largest banks and brokers on the Street are taking handouts from anyone in the world. I think this might come back and bite us in the ass.
So where are we going? Honestly, I hope down for a bit to clear off the gold bandwagon. It makes me nervous that everywhere I look all I hear or see is talk of $1000 gold. I imagine that CNBC will have a countdown ticker in the corner when it gets close. I liked it better when all you read or heard was that it was crazy to own gold. At least none of my non-financial friends are asking me about it--yet. I want the gold party to be exclusive as possible. A nice little shakeout will get rid of the riff-raff that has crashed the party.
Sorry for the short update, but I am tired. I was up late watching gold (exciting, huh!) and today I was very busy trading the gold stocks.
posted by Neal | 4:54 PM
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