Replies to post #68507 on ajtj99's Market Pulse

[Ace Hanlon]

I recall that when oil first made a new all time high around $45 some time ago, Heinz opined that breaking above 25 year resistance was extremely bullish.

He made the same comments about gold when it broke above 22-23 year resistance around $510.

Enough said.

[chainik]

Good point (institutional money). It's interesting that Heinz also mentioned higher allocations plans for gold by institutional investors in 2006 (don't know where he got the data). Gold market is thin; if this is true, the upward pressure on the POG may be relentless.

Another obvious factor that is probably contributing to the rise of gold is anticipation of the end of rate hikes; that's why, IMO, it might be a good idea to sell miners before the Fed ("sell the news").

I see no good reasons (except greed) to hold SMH anymore. Oversold rapidly shifted to overbought, good seasonality is almost over. I'll probably sell by the end of the week. No intention to short.