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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: Amelia Carhartt who wrote (20042)	11/18/2009 5:47:25 PM
From: SliderOnTheBlack	7 Recommendations Respond to of 50428

re: ["But gold shares have been under-performing badly."] A couple of thoughts on that... On this rally leg, the HUI Gold Stock Index has actually doubled the % move of gold, with the HUI up 21% and Gold up 9%. But while Gold is around 10% higher than it's prior all time high, the HUI Index is still about 9% below it's prior high. And I wouldn't sweat that too much, because the HUI:Gold ratio ebbs and flows continually throughout the cycle. There's a completely different class of investor in the futures market, as opposed to those holding gold stocks. Given the level of broad market and the lack of any significant economic recovery, those holding any type of stocks have one eye on the exit door and are a bit skittish here. The metal is unquestionably in stronger hands, so it really should not be a surprise that it's led the stocks to new highs. After all, the DOW is still 4,000 points & 40% off it's old highs, so in comparison to the DOW, the gold stocks haven't done too badly, with the HUI only 9% off it's highs. And I'll repeat, I do not think they'll let the front-running, high frequency, prop-job traders let this market crash before Obamacare and Cap & Trade are brought to a vote. So gold bugs need to monitor that closely, because after that vote passes, I think we get a broad market correction and gold stocks will get taken down as well. I think the rollover of the DOW and S&P will trigger our interim profit taking exit from this move off last falls meltdown lows. Until the DOW rolls over... SOTB