Trotzky resurfaced,
@gold stocks -- trotsky, 17:04:33 08/05/08 Tue
although there has been a huge spike in put buying, the XAU/gold ratio is at an extreme low, the gold/oil ratio has been rising, and so forth, the carnage in gold stocks continues unabated. considering the extremely weak close, without even an attempt to bounce, it's probably not over yet. i'm also beginning to wonder a bit about the incessant bottom calling. sure, when stocks get this oversold there has to be a bounce at some point...but when everybody is expecting a bottom, then it seems likely to me that after the oversold bounce, even lower lows will be seen. gold is only about 30 bucks above the level that imo represents the obvious bull/bear demarcation. the currently near perfect negative gold/dollar correlation makes me think it may well give this level up eventually....since i don't see a great many chances for the euro to rise. however, it's a bridge best crossed when we get there - for now, my bullish gold wave count must still take precedence, but two of the support levels that i thought might hold have already gotten blown away, so i'm beginning to entertain a more skeptical view here with regards to the next support level. certainly the HUI has sliced through numerous supports as if they weren't there. even if Sinclair keeps intoning his 'nothing has changed' mantra it sure looks and feels as if something has changed, or is about to. |
