Serving Up One Micro Blip, Gold Pompoms Dealt With (correction added)

Well, to answer the closing thought in this morning’s post

So anyway, we’ve got a pretty good jump in the VIX and we will soon see if it is the start of something or just another Micro Blip ™.

Serving up Micro Blip ™ number 8, at least insofar as it fueled the market back to near and in some cases above its previous high. Fear has worked for this market every step of the way and that is mania; dynamic, stupid, emotional (both ways) and desperate.

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Things I have noticed lately that have bothered me about the gold sector, which is functionally something of a portfolio balancer for me and/or an ongoing trade until I get the right fundamental signals…

  • An exclusively gold focused analyst was bearish, bearish, bearish… and then recently, bullish with probably 2/3 of the rally already in the books.
  • A gold cheerleader who uses too many !!!!! and obsesses on India was doing his thing yesterday…

“GDX looks like a technical “wonder kid” right now. Note the massive volume on the upside breakout from the rectangular drift pattern that is almost a flag! I expect India to provide the higher price gold floor foundation for a possible surge to the $1500 area for bullion.”

  • A technical analyst who writes in dynamic (read: alarming, titillating, bipolar) terms was out yesterday with the headline… OPTIMUM ENTRY POINT FOR GOLD AND SILVER STOCKS AS MASSIVE NEW SECTOR BULLMARKET SOON TO BEGIN…
  • And worst of all, every time I send a post to LinkedIn, a popup headline from the mainstream media reminds me that Gold scores its longest winning streak since 2011

Correction: the MarketWatch link above speaks for itself, but the actual robo article served by LinkedIn came from Bloomberg on January 1: Gold is on Its Best Run Since 2011, complete with excitable newswoman “a bit of a banger of a year for commodities… “ ha ha ha. Oh, and there’s the old “golden cross” canard to boot. 

The article is actually from January 4th, but it’s still being robo-served out there by the automated entities that exchange our eyeballs for pay. Anyway, point is that it’s dated and it’s like a zombie out there informing the last guy on earth who does not yet know that gold has been bulling since we caught the low and projected the rally back in December.

So it all made sense today. We micro blipped, the market went up the gold bugs signaled a smack down to come with some over enthusiastic cheerleading and promo. And the world turns…

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