$1,200.50 Gold and Bad News For the Blue & Gold...
bloomberg.com
"Gold futures for February delivery advanced as much as
$18.20, or 1.5 percent, to $1,200.50 an ounce on the New York
Mercantile Exchange’s Comex division and were at $1,195.40 an
ounce at 11:35 a.m. London time. Gold for immediate delivery
climbed to a record $1,199.43 an ounce.
The price of spot gold has advanced 36 percent this year, more
than the MSCI World Index of shares and U.S. Treasuries, and
is heading for its biggest annual gain since 1979."
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As gold continues to new highs, the HUI Gold Bugs Index is
facing a triumverate of technical resistance of it's 494.38
52-week high, the 500 barrier, and it's former all time
high of HUI 518.
Technically, the HUI responded very favorably into the
correction off the Dubai news as it held what I thought
was a key support pivot point at HUI 460, with an intra-
day low of 463.24 and a 471.31 close.
Given the gains (and bonuses) gold fund managers are sitting on,
and the toppyness of the broad market, it really shouldn't be a
surprise that traders are protective of gains, and making gold
pull the stocks through resistance... rather than bidding the
stocks up ahead of anticipated higher-highs for gold.
The next couple of weeks could be tough sailing, but John
Paulson is launching his gold stock fund in January and we
have the new junior mining ETF.
There's nothing wrong with taking some chips off the table
here, and it's good place to buy some puts for insurance.
Keep stops tight and trade this transition into year end
on the technicals, because come 2010 I believe the fundamental
winds will once again be behind the shares sails.
Fundamentally, the Japanese are devaluing, the Eurozone is
screaming about the strong EURO killing exporters, and
everyone from the Vietnamese, to the Swiss are engaged
in competitive devaluation of their paper currencies.
In the U.S., Stimulus II awaits, and the CATO institute
says the real cost of Obamacare is $3.5 trillion dollars
in new deficits.
Sam Zell the real estate magnate appeared on CNBC this
morning and had a long list of criticisms about the
Obama administration, the chief being this simple thought
vis a vis the non-stop bum rush of political agendas,
and non-jobs focused spending bills...
"It's The Economy Stupid - Not Health Care, or Cap & Trade."
Focus on JOBS, JOBS, and JOBS - period.
What more needs to be said?
SOTB
PS: A day of mourning yesterday with the firing of Charlie Weiss.
I was holding out for one more year if Jimmy Clausen and
Golden Tate both came back.
ND was in every game this year, and the weak link of last
year, the offensive line showed tremendous improvement.
Next year, if Clausen and Tate return, arguably, they could
have the best offense in the nation. And if Charlie could
do with the defense, what he did with the offensive line,
the program could be back on track.
But, 4 straight losses to end the year, regardless of
how close the games were... doesn't cut it in any major
program.
The alumni want Bob Stoops (my choice), and Brian Kelly
is also on the short list.
We shall see.
Nothing like a soap opera every five years.
I'm starting to feel like a Cubs fan.
But don't shed any tears for Charlie, as his buyout is
reportedly going to be between $12 and $18 million.
I remember when Lou Holtz's base salary was $135k and
Urban Myer was making $55k as his assistant.
... if only there would have been a way to go long
college football coaching salaries?!?!
And how about the great timing by Notre Dame AD Jack Swarbrick,
on giving Charlie a 10 year contract extension?
Maybe ND ought to find a new AD as well. |
