George, you should look at a long term chart of those leasing rates, the sub 1% we have had recently was simply ridiculous, and the almost doubling of the rate does not even bring that rate to the "norm". While there is always a possibility of gold rushing up (particularly with some countries in the throws of economic uncertainties, like Turkey and few other IMF "supported" economies), the chart right now, will not turn bullish until gold pierces the declining line at about $272/ounce or so. By the way, the XAU did falter toward the end (not giving up all it's gains, but sure showing decline of enthusiasm). The main problem with gold is still, IMHO, over capacity, and the fact that a lot of "idle" capacity could easily come on line if gold gets to stabilize just above $280/$290, the threat of such capacity will probably keep the lid and maintain the current down trend, or at best basing in the the $245/$260 pe pounce. IOf it breaks $272, the story may change, but I have no visibility of fundamental events that could bring that about.
What is you target selling point for those QQQ? I hope you loaded up at 50 or so yesterday.
Zeev |
