This is all psychology, and it is hard watching the various rallies when you are not aboard them. But that is the rally's job... to make onlookers feel bad. So bad in fact that the pain can only be cured by buying in. That is how hope and greed work.It is the reverse of the pain and fear that made many gold stock holders barf up their shares during a historic buying opportunity, just to make the pain go away. It is hard, but important to keep perspective during emotional flash points. October of 2008 was surely one of them, then again for the broad markets in March.
This week is one of them for many people, on the flip side. There are legions of people the world over, sitting out general stocks as the pig floats the hope balloon. Sitting out the star of the stock universe, the gold sector. Sitting there trying to remain disciplined in the face of immense emotional pressure.
All I can tell you is that I do not like this psychological set up one bit, which is why I am a seller and a holder, and certainly not a buyer. I haven't really been a strong buyer since the 260's and 270's. Today, I am fearful. That is how I am trained. In the last 3 months of 2008 I was buying this stuff without really even thinking about it. There is a reason I am a bottom feeder and that is because I want to know that I am getting the best deal and playing sucker to no one.
There's the weekly HUI chart above showing what should be strong resistance under that crown of overhead resistance. Where this impulsiveness will actually end, I do not know. But when it ends, we will look for general buying opportunities, and not until.
