loantech, Slider's and Bill Murphy's views.
You reported Slider's well expressed thoughts; here's Bill headline statement about the last two days.
Bill Murphy of GATA:
""I have never seen gold trade so superbly like this, at least since the Café opened. Two days in a row, the cabal went after gold and failed to keep it down. The market is screaming: I WANT TO GO HIGHER, MUCH HIGHER!!"
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My observation, too. These last two days' comeback seem to indicate a balance of power in the market is shifting, or at least to a higher plateau of price. New buyers seem to have come in the last two days to take those positions being liquidated by the longs on the trashing of GOLD's price beginning Tuesday morning. The shorts have not been able to scare out the longs and create a selling panic as we've seen and lived through so many times....at least not at this price level, at least not yet...hence I do suspect we're "going higher." .... at least irregularly...
Re Slider's view that the US stock market won't go down because money is coming out of BONDs....OK, and the FED seems very intent on keeping the liquidity there to support prices...I can see those factors as support. But as to energy and GOLD....well, lets just say I'm a bit more bullish on both than Slider, who is right miner shares have been going sideways for a year, but was wrong about the HUI for example going sub 100....so far..(Meanwhile I'll keep the distributions and capital gains from CanRoys and a group of E&Ps I have over cash anyday.)
Yes, while progress has been scant among the miners there have been some good swings through which to prosper. Potentially a break out of HUI's ascending triangle could occur if the bulls calling for $400 gold are right. I notice we're alot closer to new highs than the 52 week lows in the metal and miners, if that's any indication of whose calls to follow.
ERF - grand daddy of the CanRoys, yes maybe a double top forming up here, and its percent distribution has fallen with the price appreciation, but these are fairly serious gains for an income investment. Investing for yield with an energy kicker.....at the right price it's been real hard to beat.
stockcharts.com[h,a]dbcaynay[dc][pb40!c200!f][iut!Ll14!Li14,3!Lh14,3!Ll14!Ld20!Lya7,14,28]&pref=G
I will withdraw now from the bullish pounding table, as the metal markets always seem to do better when I'm cautious and concerned... |
