Wednesday, September 26, 2007
Speaking of over bought... HUI
The question now is how deep is the pull back likely to go? With everything except pesky oil (which may well be topping out) aligned in the miners' fundamental favor and considering the impulsive and relentless nature of the rise, a nice buying opportunity may be nearing. I have noted some areas where people who missed the bus at the August bottom might start scaling in. Or maybe all's well with the financial world and gold will go back to being a relic and "the credit crunch" (they've institutionalized the name which means the financial media are trying to sanitize it for public consumption as if it does not contain near infinite negative compounded and leveraged possibilities) can be denied, even as Wall St. cheers Bear Sterns' rumors that Buffett and/or a Chinese concern are interested in ownership of its stock. Our friendly troubadours are also cheering continued economic deceleration which would keep Bernanke dovish. Yes, this is healthy. I'm sticking to the "retail is bearish and covering shorts to new ATH's (on some indexes)" scenario and then an Oct/Nov time frame that is bearish but good.