I am committed. During this correction I have been adding to my core gold miners with the idea that conditions will again turn in gold's favor. Those conditions would be a resumption of obvious credit and financial problems, a top in oil and commodities (vs. gold at the least), economic contraction again trumping inflation fears (and resulting re-steepening of yield curves) and a short term decline in interest rates but again, let's stress that it is the yield curve that really matters more than whether rates are rising or falling. The CoT data appear to be slowly improving and the public is not buying gold bullion (this is the longest stretch I have ever seen that nobody bought from BullionVault through my website or blog - a good indicator. So yeah, I am still hanging around waiting for the gold stocks to either finish correcting (per parameters shown previously) or prove me wrong, which I think is unlikely.
Anyway, what I am watching now is the broad US market, global markets (China/Asia in particular) and the Dollar. Here are a couple charts showing the S&P in what could be a bear flag and the USD still looking good but forming something of a rising wedge. On the front of the website I put up an SPX chart showing a rebound possibility, but it could have one more down leg before that gets underway. As it looks now the USD's risk vs. reward has become much less favorable in the 74's vs the 71's. Let me rephrase that. The USD's risk/reward has been garbage for years now because it denominates a country that has led the world in losing its way; losing its moral compass, economically and otherwise. But big picture is one thing and short term FOREX is another.
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