I'm typing this from the waiting room of an auto mechanic, so it will be brief and to-the-point.
The world has gone ga-ga for gold, and with good reason. It has, over about the past decade, climbed many hundreds of percent. Recently, it has been just about the only bull market on the planet, and – let's face it – it's pretty, useful, and always feels nice to jingle a few gold eagles in your pocket.
But sentiment has become so wildly bullish, it seems like a good time for gold to take a breather. The folks over at Elliott Wave International included a chart of gold versus its sentiment this evening, and it's an eye-opener:
I took on a not-too-big position in DZZ (the double-bearish ETF on gold) late today. I've had a lot of success day-trading GLD lately too, although I didn't hang on to any overnight position of it.
I've put my time to use in the aforementioned waiting room by going through the nearly 800 stocks in which I don't have positions, and I've smoked out 18 bearish possibilities and 16 bullish ones. The bullish ones are almost all short-term bounce plays, although the fact I was able to find anything bullish tells me to chill a bit on the bear side, because until today I saw nothing that I liked.
It's been a busy day, so I'll probably hold off on any final post for a few hours. I hope everyone was able to surf the waves today successfully.
