Dear CIGAs,
Now that we have reached $1752.20 gold, what should you do?
Stay firm in your disciplines. During this entire market chasing strength in gold has proven dangerous more often than not. Angels should be looked at for the mad trader as areas to lighten, not double up. You can win this game with a ruler, but you will have to stay up 24 hours a day. We have not had a blow off top in gold but there has been epic short covering in world markets. That type of action weakens short term markets. The best buys now are identified by a simple ruler with more complex firming internals.
The holder of the right position that shows the patience of Seligman and Livermore always take the greatest prize. Gold has made no meaningful top, but volatility has only one way to go and that is up. Our respected colleague Alf Fields would agree that traders better have karma on their side, but the gold market is nowhere near full valuation. Be careful traders but stand strong those of us who have hedged against the insolvable problems of the entire Western World.
Your successful protection is my reward greater than money, greater than matter. See you in the morning.
1. Those holding gold to hedge the systemic risks of the Western Financial world simply stay in your position.
2. Traders lighten up your positions as gold approaches the next two Angels.
3. No market fails to have reactions at some point.
4. Reactions in this market will be deep, but brief when they occur.
5. The undervaluation of good gold shares has passed manic.
6. Utilization of some of your gold profits into good gold shares is pure logic.
Respectfully,
Jim
