I find Slider's posts to be very useful. He presents a point of view that is often unique and more often than most of us who post on this thread, correct.
While I think the odds are more like 85-15 that a new gold bull has begun, I think we are close to a significant correction and if you are holding gold or gold stocks, it might not be a bad idea to lighten up. No matter how bullish the market might be corrections will come and they will come in a way to fake out most traders.
While I have been impressed by the strength of the market, it is becoming more and more obvious that it needs a rest and for that matter a correction.
In fact from a technical standpoint, a correction from these levels would be healthy. I have a real problem with the notion that stocks will make a new high and continue on given the tremendous over extension of the market. I have been and continue to lighten up and if the move continues without a significant correction, I will even consider selling some of my core postion. At the moment, in addition to my core position, I am only holding jrs. that I think may buck the trend, and I have mental stops on these.
I know that we don't often like to hear the negative side, and I know Slider has an "I told you so" style, but I always read his posts, at least the ones about the market, and I never take him lightly.
Little joe |
