Late notes: an hour before the close, the Dow was up 120 points, with substantially less volume. This told me that institutions were selling into the rally. The Dow closed slightly off its high. I call this a poor day, accented by institutional selling. Gold had its best day since last August, closing at a new high for the move. I think gold is overbought now, with many Johnny-come-latelies belatedly advising positions in gold. Today there was a full-page ad in the New York Times advertising “bargain gold.” This too suggested that gold, after its excellent rally, is now overdue for a rest.
In the big picture, I continue to believe that we’re in a world depression. This will be followed by frantic activity by the Fed, as it prints new trillions of dollars. Which I’m certain, by the way, is why gold has been rising. I think we’re at the inflection ... Log in or subscribe to continue reading.
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