Take your pick – gold, dollar, T-bonds – they all were ready for some sort of reality check. The problem with this is that the stock market ended higher Friday, shrugging off the biggest dollar jump in months. Wagging the dog, indeed!
Actually, the stock market jumped on the fantastically rosy employment data, where fully 0.2% of the population found new jobs!!! The Dow rallied 150 or so points and then collapsed back to zee-roe. Yes, a final rally into the close flipped the bears another finger. The strong finish, however, was not enough to negate the total intraday failure that preceded it.
I sold half my gold Nov 25, the day before the Dubai Dump, and had a good thanksgiving watching gold dump intraday, too. Then it came back to ruin my dessert. So, today I feel vindicated. My Marketwatch article ran Tuesday with the topic of – the dollar is due to bounce.
Needless to say, I am not breaking my arm patting myself on the back. The stock market apparently stopped following the dollar, short-term yields (the 2-year I wrote about in Barron’s Online Wednesday) backed up so things are still too fuzzy to become complacent.
Now looking to get back into gold. Yes, this soon but not at current prices. Still needs to squeeze the shorts a bit more. And the dollar has plenty of shorts to squeeze too.
