Moving to Cash Again
posted Dec 2, 2004 at 05:19PM
This morning I sold my oils, nickle and coppers. Again, mostly a money management kind of decision. I was sitting on gains and decided to take the profits.
Obviously the real motivation was the crushing in gold stocks. With follow through selling on oil and the weakness in bullion that showed up even before the USD bounced - well it seems the risk premium for holding "commodity" or inflation friendly stocks was going up.
Still keeping an eye on golds. There were a lot of people who were content to hold on as long as bullion was going up, but were ready to ditch at the first sign of weakness. And that certainly happend today.
If bullion stabilizes, and all the bears have been cleared out, then the road may be set for reversals in HUI and HUI/Gold. But until I see HUI/Gold reclaim 50dma, I will stand aside and keep my powder dry.