Everybody likes to root for the little guy. And when I say little guy I really mean the precious metals market. Those die hard gold bugs are rejoicing tonight and cracking their bottles of champagne because all is well in the land of the yellow metals (and the silver as well) while the gold bull is rages on. Or at least it would appear that on the surface.
Don’t get me wrong, a breakout is a breakout and we did have one but there are a few things nagging me about today’s breakout.
- The publicity gold is getting on my twitterstream and around the blogosphere
- Volume wasn’t anything spectactular
- A few issues had weird trading activity and closed well off their lows (HMY SSRI AU SLW)
- ANV actually failed to make a new high and closed off it’s highs
- ABX and RGLD are far from making new highs
- GDX made a new high…barely
I’ll honor this breakout for now and the few gold stocks I especially like going into tomorrow are AU PAAS IVN, but I would be very suspicious of this rally for now. One thing it has going for it is the overall market is overdue for a pause, which could buoy the gold market higher based on that weakness. I personally still like the less crowded trade of being long bonds (TLT), bubble or no bubble.
