A quick note to let you know that I will be out for the rest of the day. I wanted to communicate this because I tend to update during dynamic periods and I don’t want people interpreting the quiet as ‘nothing is actionable’ if for instance signs of a reversal were to manifest in the precious metals, or the stock market for that matter.
For my part I took the totally ludicrous action of shorting the Gold Miner VIX, AKA DUST this morning after making a post about it. For obvious reasons I don’t reco such high risk actions.
On the gold miners, HUI has just about hit the 2008 low and if it is going to bounce, this could be a spot for it. I notice that GG is green, and that would probably be the first one that institutions – if it is they that are selling these things down as I suspect – might look to enter. Well, the ‘tutes that are not busy puking them up anyway.
NFTRH 315 will have a lot to discuss. We may not have the fundamentals in line yet, but to me there is a whiff of artifice in the air about the whole macro backdrop. A game of Whack-a-Mole, as the US Fed ends QE (mole ducks in the hole) and out pops the BoJ with their action.
So that in itself is a reason to not discard the gold sector from our consciousness. They may be able to pump equities indefinitely, but generally speaking and in consideration of the closing of the 2007/2008 Fear Gap, things still appear to be changing slowly over these many weeks and months.