My worst fears about gold have come to fruition. You know I’ve been worried about a head and shoulders top forming in gold, ever since the head formed after the left shoulder. I went long NUGT with vigor and now it appears the second shoulder, the ever ominous right shoulder has formed — fucking me with this NUGT and AU.
I will hold for one more day and if it doesn’t rebound — I will ironically chalk an L on my ledger — an L, rather incredulously, that I had predicted might occur many weeks ago — but still, nevertheless, fell for the trap.
On the issue of there overall market, in spite of recent weakness, a golden cross is forming on the SPY — the most bullish of market indicators.
Thanks to my positions in LU and FIVE in my Quant, I am up 141bps today.
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The trap is thinking it’s a trap, hombre.
Yes. Usually. Miners doing what miners do.
Chop. Chop. Chop. Patience.
Paradox
i feel better about getting out of palladium in December. PALL has gotten whacked past couple of days. Perhaps a buying opp at some point but I’m out of all shiny objects right now.
I like the small regional banks in the northeast. Small as in less than $10B in assets. Ripe for consolidation by the super regionals who can’t grow organically. And most pay a decent dividend so you get paid while you wait. They’ve all been hammered lately w/ the inversion.
If you want at relatively low risk entry to satisfy any optimistic impulses you may have, consider home builders. Beaten down for the past year of QT, had a nice shake down that resolved in what may turn out to be a bull flag in XHB, beneficiary of sissy bond buyers and the pause in tightening. Enter here with conservative stop below 37.92 area.
Trying really hard to find a way to sugarcoat the gold action today to no avail.
Nasty.
The entire sector needs a quick and sharp rebound, soon! Otherwise, put a fork….