Let's just say that I am not convinced. If I am short term bearish on oil, and gold is rising in sympathy with it then I am short term bearish on gold too. I totally disagree with the thinking that says rising oil is inflationary, but since the market thinks that and since the market controls short term direction, if I am bearish on oil I am bearish on gold. That's where fundmentals come in and since I am holding my favorite miners I am delighted by a day like today. It's just that nothing has convinced me that buying opportunities at previously noted levels are not in the making. This proxy for oil (USO) looks eerily like our favorite gold proxy (GLD). Gold is in the realm of the monetary now and somewhere during the next credit barf fest I expect that to become evident. Is today's move a monetary event or just in step with the commodity complex?
October 18, 2007
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