The commodity complex was not going to continue rising unchecked in the face of unhinged public inflation expectations and an Uncle Buck fitting himself with a crash helmet. Maybe now that the pump reads sub-$4 and the USD has zoomed to overbought oil and the rest of the go-go complex can get a significant rally. I have been buying gold & silver stocks on the plunges; filling my bag awaiting such a rebound. But I tell you I have never been comfortable with them rising and falling with the crude boys. Hence, if this condition continues I am going to trade out of a significant number of PM stocks on the next rise because I am bearish oil, bearish gas, bearish copper, bearish tin, bearish corn, bearish stocks... bearish everything come the end of summer. Gold must start trading like money and nothing else. The true buying opportunity in the gold stocks might still be months away.
But for now I am in full bottom feeder mode which means all in and around because 350 may not be the bottom for HUI. The USD is putting on quite a show today up to and probing through what should prove to be reliable resistance, at least in the near term.
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