127% Short…but “Not that Bearish”
I went heavily Short August Comex Gold last Friday at $1,347.30. I did so because the 14-bar RSI was overbought in an area where a Double-Top could occur, and one of the best technical analysts of today was calling for a correction (first article below) and I didn’t want to watch once again as the value of my physical holdings melted away.
However, I see the equity market entering a negative seasonal period within an increasingly difficult fundamental background for “stawks” – and that tempers my bearishness on gold since I think we’re not too far away from the Fed once again capitulating to Wall Street’s demand for a rate cut.
We are NOT yet in a confirmed Bull Market for Gold or I would definitely not be short the futures. Rambus’ “Golden Neckline” has yet to be clearly penetrated – and neither has mine. (below)
And the Monthly Line-on-Close Ratio Chart of Gold and the S & P 500 is continuing to tease us. (below)
However, far more erudite and experienced men that I are either not as yet bearish or seem to be slowly turning bullish once we get past the present “undecided” period. (Read the articles below.)
I’m looking for August Comex to drop down as low as $1,303 – $1,313 and then begin a fairly strong recovery IF the “stawk market” has or is topping out.
https://goldtadise.com/wp-content/uploads/2019/06/ChartWorks-Gold-Miners-06-09-19.pdf
Yes, another day of several of Spock’s Rocks up. The Steins Rocks (Spock/Plunger) were up about a 1/2% today.
So there is buying going on.
I haven’t been worried about how beaten down Spock’s are as I’ve seen many moves in them now of big percentages.