Justa's Dive Bar

[chainik]

For now, gold and HUI are likely to follow the general market. This should make them easier to trade.

One potential problem for the market is rising rate on 10 Y T-note (you mentioned it many times before). TNX is 4.76 now. Based on COT, my best guess is higher rates down the road (Saville mentioned this as well). TNX above 5 and SPX > 1500 will make stocks very expensive relative to bonds. Similar situation happened in spring 2006, and this high stock/bond ratio served as a good early warning sign of a coming top. I'll be watching this ratio.

But let's get breakout first :) In two weeks, my silly WAG (g)

I bought QID yesterday at the close, couldn't resist :)