Gold got slapped around pretty good today — down $19.
As I mentioned last week, I am short Gold for a trade. This was strictly a technical
trading call; I still believe a 10% correction is possible — Gold looked
toppy, and gave several other technical and cyclical sell signals before the crackage.
While I think Gold eventually goes much higher, that is strictly a
product of my macro-economic outlook. This technical break looks significant,
and could see Gold pullback towards support, somewhere between $500-520 (See a
weekly chart for the best view).
A few of you have asked my opinion on how gold stocks might behave relative
to or during a market correction. The short answer is "I don’t know."
The longer answer is that I’ve never analyzed companies relative to the
overall market moves; trying to game the execution of company managements ON TOP
OF tracking the precious metal is too difficult. Its an area where I have no
edge or special feel — and no expertise whatsoever.
DISCLOSURE: Short GLD
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.