Thought I’d post something about the Gold trade, but focused on the miners. What I really like is the fact that CNBC, Bloomie and everyone else is screaming “overbought” on gold, just when we are nearing a potential moon shot higher.
If the dollar continues to devalue, as it most certainly will, we could see gold, silver, and the miners thrust even higher. In fact, today we saw a record close on the HUI Gold Bugs Index, after failing at 500 so many times (5).
We are most likely now in a runaway move, and that will be confirmed with a close above 520 on the HUI.
You can play this with GDX, GDXJ, AGQ, GLD and others, but my suspicion is that gold and the miners are the only space that funds are being “protected” by the falling dollar and worldwide currency race to debase.
Trade the extremes and manage appropriately!