Gold hit its short-term target of 2000+ yesterday.
Today HUI has hit its short-term target of 325.
Silver is at 27.18 (vs. a target of 30 +/-).
Recall that my plan (certainly not necessarily your plan, as we all operate on different time lines, parameters and risk tolerances) was to raise cash into next week’s FOMC meeting. The targets above certainly do not need to be ‘STOP’ signs (gold and HUI). Nor do they need to be set in stone as a done deal, short-term (silver).
I took the profit on the Silver Miners ETF, SIL and may take a few more precious metals profits. I’ll also keep an eye on other holdings, especially commodity related. The hype is now deafening.
While there are no breaks on the hype train, implying this stuff can keep going up indefinitely, there are ending dynamics in play for some of the most cyclical, inflation-related stuff, in my opinion.
As for gold and gold stocks (which do not benefit well from inflation), the view continues to be that this is a launch in progress, but one that will be subject to volatility (which means down as well as up).
For broad stocks, especially the non-inflation stuff like Tech, I continue to have a constructive view pending the downside targets we’ve noted for NDX and SPX. Sentiment is nearly as bleak as it gets.
