Everybody likes to root for the little guy. And when I say little guy I really mean the precious metals market. Those die hard gold bugs are rejoicing tonight and cracking their bottles of champagne because all is well in the land of the yellow metals (and the silver as well) while the gold bull is rages on. Or at least it would appear that on the surface.


Don’t get me wrong, a breakout is a breakout and we did have one but there are a few things nagging me about today’s breakout.

  1. The publicity gold is getting on my twitterstream and around the blogosphere
  2. Volume wasn’t anything spectactular
  3. A few issues had weird trading activity and closed well off their lows (HMY SSRI AU SLW)
  4. ANV actually failed to make a new high and closed off it’s highs
  5. ABX and RGLD are far from making new highs
  6. GDX made a new high…barely

I’ll honor this breakout for now and the few gold stocks I especially like going into tomorrow are AU PAAS IVN, but I would be very suspicious of this rally for now. One thing it has going for it is the overall market is overdue for a pause, which could buoy the gold market higher based on that weakness. I personally still like the less crowded trade of being long bonds (TLT), bubble or no bubble. 



4 Responses to “Elephant in the Room”

  1. Steve Says:

    Yes, there were some nice gold runs today, no doubt. Pundits are saying the breakout is due to sheeple not knowing where to put their money? Hmmm. We’ll see if this breakout has legs – I bet not. I bet the Dow, S&P and Nas move up tomorrow while gold muddles around 1270. Don’t ya just love speculating? CG.TO is on fire for Canadian producers.

  2. Steve Says:

    Yes, quite a run for gold and miners today. Some pundits are attributing it to sheeple not knowing where to put their money? I would not be surprised to see gold muddle around 1270 tomorrow while the Dow, S&P, Nas and TSX move up. It almost seems as though the market has priced in any type of crappy economic data as it is presented week to week. Little seems to phase it as it pushes higher. CG.to is on fire for Canadian gold miners.

  3. zentrader Says:

    There are so many Canadian stocks moving right now I can’t keep track of them! I skipped out of dinner out with Maria and friends to work.

  4. Steve Says:

    Dedication…you realize you will have to make it up to her at some point, don’t you. lol.

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