Well, I've seen enough and greed is finally taking over.
The overnight action has led me to this point where I feel that last week's EE-coerced "correction" is over.
The USDX looks awful.
Crude looks ready to move and close through $93.
Copper, though suffering a minor setback, looks ready to challenge its old high of 12/31/10.
The grains are kicking ass.
And this, from Alf, drove me over the edge: http://jsmineset.com/2011/01/18/a-note-from-alf-fields/
Consequently, I've been a buyer this morning of some April11 gold calls. I'm buying more silver calls next but I can't decide whether or not to roll the bones on March. I may pay up and go out to May. I'm taking a long hard look at April crude, too. I'll let you know later today what I decide.
Lastly, I found this little gem earlier. Frankly, I'm surprised that "Tyler" hasn't linked it yet. I suppose its because there's nothing earth-shattering here but, nonetheless, the wisdom of Hugh Hendry should always be heeded when he shares it. In this interview, I certainly don't agree with all of his statements. I get the feeling he's trying a bit too hard to be contrarian, which is easy to do when you've built your reputation upon being contrarian. Its a bit of a catch-22.
"Treason doth never prosper. Why? If it does, none dare call it treason."
OK, I supposed I butchered that some but you get the idea. A contrarian rarely prospers long-term. If a contrarian becomes consistently correct, like Hendry has been, his views soon become "mainstream" as the sheep flock to the contrarians ideas. The contrarian, being the visionary/radical that he is, then must look further and further away from the norm to find new views that are once again considered "contrarian". Eventually, he gets so far away from the norm, by orders of standard deviation, it becomes highly unlikely that he can maintain his performance. Does that make sense?
At any rate, I present to you Hugh Hendry, in all his glory:
More later after I get off the phone with L-W. TF
10:10 EST UPDATE:
Unfortunately, today we've already seen a continuation of the pattern from late last week and early this week. Namely, a pop on the open and then all bumps and rallies are sold into by the EE and whomever. Gold is already $8 off its high achieved just 90 minutes ago.
OK, if we're going to see a FUBM form on the chart today, it should do it from right about here. 1369 in gold and 29.15-20 in silver. Keep you fingers crossed. A reversal of this recent "sell-the-rally" pattern would be quite positive for us.
11:10 EST UPDATE: