Random Thoughts

So over the weekend, I submitted two more articles to SeekingAlpha and both were posted. The response on the crude piece was for the most part in agreement which had me wondering if I was actually wrong in my assessment. One person said that technical analysis was stupid or something like that and had no usage - all I can say to that is, go put yourself in a trading pit and then come back to me and talk about the fundamentals of crude. As for the gold article, it was as if I had blasphemed god! There were so many negative things thrown my way that I do not have enough space in this blog to comment (though I will later this week).

However, here are a quick few snippets that I think many in the gold community are missing

• Gold is not a replacement for currency. If we go back to a barter system, we move back to the dark ages. With currency comes many problems but it also creates many opportunities and encourages capital creation. I suppose I could go on and on but I won't. Bottom line, we are not moving back to the gold standard so get over it!
• One person questioned my thoughts on the index funds dumping gold - I should have said hedge funds and those CTA's who are pegged to an index. The redemption's have been coming fast and furious over the past 6 months and this is putting downward pressure on the yellow metal.
• Oh, I mentioned that $850 had to hold. Guess what, it didn't....

As for the rest of the market, there were a few interesting things going on.

• Short squeezes are occurring all over the marketplace. My stock rating model is showing superior gains now for those stocks who had waterfall lows (waterfalls to me are like parabolic tops). Interestingly, in those stocks that are not heavily shorted, the gains are not coming that quickly. That argues that the sustainability of this rally may be waning.
• At the same time, today was not enough for me to go short.
• This mess between Russia and Georgia might get much more interesting if the Ukrainians have something to say about it.
  
• Did I mentioned gold collapsed today?
• How about Crude's reversal off the lows? There was a late day bounce on the back of Russia virtually taking half of Georgia in today's fighting.
• The late fade in stocks took things below a major 1300 level in the S&P but the bulls got together and rode it higher into the close. Should be interesting to see if it holds tomorrow.
• I cut my last long position and now waiting for a correction. Not sure when or where it will come from.

Good night.