Let the above visial metaphor serve you as caution both political and market-noteworthy. And I would rather put the emphasis, if I could, less on any proposed lack of intelligence and more — as in this particular case — on a plethora of emotional overload.
I think we’ve all been conditioned since the dawn of the Modern Era to be less disciplined about our emotions and how we allow them to guide our better judgment. Therefore I don’t derisively dismiss those who would choose a relative unknown, a blank slate — a cypher, even — over “more of the same” after years of increasingly partisan turmoil, economic upheaval and yes, war. I don’t even calumnize those who would, with less than optimum due diligence, usher such a person in under the auspices of emotionally laden, even heartfelt notions of “change” and “renewal.”
However, I do applaud those for whom the fugue is beginning to lift.
A similar sense of euphoria has been brought up short recently, this time in our gold and silver metals and corresponding miners markets. Despite my many assurances that the treacherous bull of the last nine years would careen about tossing off weak adherents like so many loosely tied marionettes, many are still appalled and even frightened by the pullback we’ve experienced over the last week.
That, however, is an example of the very psychosis of secular bulls.
Like mad men at the mazurka, secular bulls will make you dance for every penny, and some days you will dance your feet raw. Sell calls, my friends — or take some positions down to a more manageable level if it’s worth your good sleep. God knows, some nights it’s worth mine.
Note my [[$HUI]] chart below for clues:
We may bounce here at the $400 breakout, or we may take the $HUI all the way back to the 61.8% fib retrace at just below $380. I am prepared for both scenarios, and I would suggest you gird your loins for both as well. As for market specific stocks, I like Allied Nevada Gold Corp. [[ANV]] tomorrow, off a bounce of the 50-day, which has served as strong support for a while. That would be approximately $8.73.
My best to you all.
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