You must constantly adjust your
forecasts to account for price action as a function of time. While I
expected a correction to the $1400′s, the price action since then just
hasn’t justified such a call, which is why I have been buying. Don’t get
stuck with one view of where a market is headed if the price action is
telling you something totally different. This is the trap people fall
into all the time.
People are way too bearish on gold in
the short-term, which suggests to me we will see a strong move in the
opposite direction. For now, I think we are setting up for a retest of
highs, but first I want to see gold push past $1730. A convincing bounce
off of $1600 was the first sign we were in store for a sustainable
rally. A move past $1730 and then $1750 will be the next sign. I’m not
sure people will catch on to the rally until it’s too late.
I have been steadily adding to my gold
positions throughout this correction. If there is one thing I’ve been
consistent about the past couple of months, it’s that gold stocks are a
steal. You must be patient in waiting for a rally to materialize; the
biggest moves always happen a very short period of time. A big move may
be coming, and you can be sure I want to be positioned for it.
Article Source: http://expectedreturnsblog.com
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