Do you ever feel "de ja vou". One of the main reasons i write this blog is to track my thoughts. Currently i feel like oil is gold back in 2008. Remember oil is going to go to $300 dollars a barrel. I sure do and that is where gold is now. Gold is going to have a nasty decline and I wouldn't bebuying it here or shorting it. The time to short gold is when everyone and their brother buys it and it has what i call a blow off top. That is when the shorts get a nasty sqeeze and it goes to $1300-$1500 an ounce. This will most likely coincide with a top in equities and the start of a nasty bear market. We will see that happen and that will be clue to short gold and the equity markets.
We are very close to that now.
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Hello, I'd like to agree but looking back at the monthly charts, gold's path has a remarkable similarity to oil's and it appears that gold is currently where oil was in early 2007. Also, the increasing calls for gold to have a sharp pullback may be as premature as those for oil to correct after breaching $100.
ReplyDeleteRemember going into year's end the hedge funds will be chasing momentum and this gold trade might be their last hurrah to pull out good numbers for the year!