As subscribers of The IKN Weekly know, I’ve been selling a few positions into this pop and taking profits (they’ve also probably worked out I’ve been selling them a little early and leaving cash on the table for others, we’ll deal with that Sunday ladies and gentlemen). I also have a couple of others I’d like to sell before the month is done. On the other hand that doesn’t suddenly make me a gold bear; far from it, I see it going higher, we’re talking portfolio management nothing else (aka “getting too cute”).
To the point: There’s a lot of script out there on gold all of a sudden, not just from the permabulls (hint for gold neophytes: Check to see if the person giving you “advice” today was telling us that the Gold Apple iWatch would change the worldwide supply/demand for the metal this time last year, it’ll give you a clear inside as to their integrity and mental capacity). The crux of it all is “what price gold tomorrow” and as IKN likes to Keep It Simple Stupid, there’s the call on the chart above. I’m not expecting a re-trace under U$1,200/oz, I think it’s perfectly possible and if it happens, the sector’s mining stocks will deflate for a while. So I’m raising a bit of cash.
PS: Some music to accompany this post.
We can wipe you out anytime