Hi vt,
Selling from 75% to 67% precious metals weighting ... If PF weighting indicates bullishness, I suspect that even on this board, few are as bullish as me :-)
Now that POG is bumping the upside of it's triangle formation, I think it prudent to be cautious until a breakout in POG is confirmed. To me, the low risk move was getting to this point (POG:HUI = 2).
stockcharts.com[w,a]wallyyay[pf][vc60]&pref=G
Now, until POG has a confirmed break-out upward, I suspect that HUI = 195 will be as good as it gets. My inclination is that gold goes up due to a dollar decline, dragging the HUI along. However, if POG drops, stocks could correct quite a bit - as low as HUI 155 at POG:HUI = 2.3. Now that's just a blip on the path if you are Little Joe or Tom or me with 67% of the PF, but for trading, I need a "show me the money" move in POG.
Funny, this is the inverse of the conversation we were having a few months ago -- I remember you down to 20-something % PM while I was holding/increasing. Seeing how this is a bull market, you are probably correct that I should not be selling here.
Regards,
crusty |
