ecrire, "the urge to sell indiscriminately"
I'll agree the work of the central banks last week did seem to reduce the URGE to sell as you aptly describe. However, I see investors looking ahead soon to the economic consequences of the mortgage resets later this year....Sinclair had a strong piece the other day stating that this is not the LTCM credit crunch of the 90's, rather we're headed toward an insolvency crisis which will not be cured by central banks infusions or the lowering of interest rates...
Financials were down again, today..
In the last hour I couldn't quite decide what of my flock to sell, but given the dollar's strength and Silver's stronger tie to base metals, than that to the precious that I sense, I kicked out my small SLW position. As a overall hedge, not particularily well tied to my natural resource orientation, I bought the double weight S&P short etf, SDS...
So perhaps here at the bottom I'm getting bearish when the opposite should be the mood, but the close was generally pretty weak, the trend is down, and taking care seemed the better thing to do.
We'll see..given my luck the energy complex and copper will ease and general equities will kick up higher.
As for Gold, I think it was down just about exactly what the dollar was up, about 1/2%. Light volume inside day...Tomorrow, should GOLD open a little lower and close higher, above 67 basis GLD, importantly, I'd take a buy signal with a stop under the lower of today's or tomorrow's low... Frankly, don't think we'll see that....however...
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the GDX closed below its 200 day moving average again.
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Right now all signals seem to be go for a rally in the dollar up to about 82, at least...
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Lower than expected economic growth in Japan seems to have reduced concerns about a rise in rates there for the time being...That gives continued life expectancy to the Yen Carry Trade which is responsible for keeping many if not ALL these markets afloat....A strong close over 85, which does not seem to be immediately in the cards, would be very troublesome.
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