Did binve's world start today?
Binve, a poster who I respect, in both investment/TA terms and HTML/blogging ability, has long since preached long gold and commodities and short the general stock market. As we have all seen over the past several years, the opposite has been true though during the tech boom and 9/11 it was certainly the case.
But today was unusual. It was the first day that I can recall in a long time that the market went down 2% yet the USD did not increase against the Euro or Franc or Gold. It was also the first day I can recall of the market being down that much and my caps portfolio took an insignifcant hit and my real portfolio being up. Gold stocks were ever so marginally up today. The correlation of Gold vs the market since November other than Tuesday through Thursday has been poor. Today really looked like the bottom for gold, but the market bottom looks nowhere near in sight. Another reason why today might be the bottom is that I absolutely refused to buy more this morning, so naturally instead of tanking some more, my potential buys would have been up!
Does this mean Gold simply leads the market and it will rebound before others or is this finally when the market turns while commodities soar through stagflation? Either one is fine with me as I currently hold only gold/oil/biotech/reduced debt (ie short less cash) positions and am just licking my lips in anticipation of actually getting my CENX target of $11.50 by Feb 1 to load up on calls again.
BTW, the performance of Silver today is an absolute joke. Just goes to show you that the scumbag banks I named in my last blog are toying with it before they are forced to scale back.