Is sentiment too high for gold?

Marc Faber has been bullish on gold for a long time and I've followed him into GLD as well, but now he's calling for gold to hit $10,000. Sentiment is as high as ever now. The inflation adjusted high form the 1970's is $2200.

One aside on this video, as pessimistic as Faber has been on the world economy (and history as proven him correct), he says that he is "not a heavy short-seller" and states his wealth is divided in equal quarters of 1) stocks, 2) gold/silver, 3) real estate and 4) cash. Not bad advice, although I think it's time to take some gold and US Treasuries off the table.. the risk-off trade is getting overdone.

SPY technically oversold

...and due for a (little) bounce. No question, there are structural problems in the macroeconomy and some major technical damage to the indices, but bears would do well to claim a small victory, take some profits and either go to the sidelines or reverse gears for a day or two.



It's time to get your list ready of stocks you want to own: GS, MSFT, PFE, KMB are some safe names. The last two have dividends larger than the 10-year Treasury. Even MCD and PEP have yields that are safe, although their stock price may pull back. For more aggressive investors, HCN, FTR, NLY are high yielders.

Remember that company earnings are still healthy regardless of what employment and other economic indicators may say.

Don't listen to me, these are not recommendations to buy or sell anything.

The Fed's "Fatal Flaw"; Nothing has changed

In fact, it's worse since the banks that were too big to fail are now bigger than ever.

What the Cool Kids are Watching:

We are at support on the daily. See if the dip buyers come in here. MA's are still positive, but it could get ugly. Momo traders are all "talking about" going to the sidelines with lots of momo names getting taken out one by one. Today it's retail's turn. Transports are also at support, finnies have been dead for a while... altho Doug kass bought Goldman Sachs a couple days ago, so it might be a bottom, or Kass is wrong (again.).

Looking at the SPY (just to be more like Brian and to piss off Eric.)

GNW: Bearish Wolf Wave

Hedge time again for my net long portfolio. Let's try this GNW short set up. Remember to set stops for loss and gain. Don't forget to take gains in corrections.

SPX overbought; AAII bullish

This is not favorable for bulls, short term. Gentlemen, start your hedges!

GLD, DBC shorts covered at target

Gold and commodities (discussed previously) have corrected and shorts were covered today. I had also gotten short silver with the ETF ZSL. Now I'm flat on precious metals. At the close today, with the market oversold on short term indicators, I opened small long positions on CAT and PBR.