Do I see a power uptrend?

Apparently, the $530 is a key level and short term traders will be taking profits before week end.

g034/Stockman-
Some of the miners are selling off. Perhaps I am I going to be able to get back in GLG and GFI or will we be saying "That was some run." here?

Regarding Gold RSI: For traders, the 30 min and 60 min turned negative today with the 60 min at 72.3 and moving south. The Daily is still positive, but at a lofty 80.8.

The weekly chart looks vertical and ready to fall.

So I am going to spend some time watching the boob tube this weekend to what kind of negative spin on gold is out there. This gold run is clearly negative to an administration that wants people to think that there is no inflation so the bs spinmeisters may be in force.

Don't listen to the man behind the curtain. There is inflation.

Negatives that I may hear:
1. Bill says the Fed will remind us that they are still hiking and are hawkish on inflation (of which there is none).
2. Fed is still raising rates and because CPI is so low, the real interest rate is going to improve even more, so why buy gold if real interest rates are positive and getting better?
3. Gold Bugs are talked of as end of the world crazy types. Are you a doom and gloomer?
4. Looking back over the last 25 years, gold has been a terrible long term investment, but the stock market has grown over 10 times in that period. Bottom line, buy stocks and sell gold.
5. Productivity is high, so buy stocks, not gold. They may discuss a possible Dow 11,000 which if it happens would be the cherry on top of the called for Santa Claus Rally.

I heard a number of analysts on CNBC this week that were positive on gold. That was different. Are they rounding up the public for a fleecing in gold? If I had the power and was evil, I would talk up the metal to the point of it going parabolic with new investors money, then short it, push it down through the uptrend line and watch the new investors puke (sell) their longs to me at lower levels. Easy money, and this is the time to do it. Does stuff like that happen? Often enough, but if global gold demand is strong at these levels, we may just form a bull flag here. Whatever happens, I stay focused, flexible and disciplined.

BTW, I get a little nutty sitting in my office, so please feel free to tell me so. I'm here on a regular basis to learn, vent and hope to help those without experience.

Is the COT data out yet?

I forgot, Tuesday is the FOMC meeting.

And for those of you not transfixed by your miners today, just a note that PFE hit a new 52 week low just a moment ago. JNJ was below 60 a day or so ago and nearly touched its 52 week low also.

MarkM

You may get your chance after all. Helen Meisler on Real$ had a note up the other day that the two most popular stocks being asked about for her chart reading were... GOOG and NEM. Made me cringe. So profit taking could easily set in.

I came across this quote which reminded me of our conversation a few days back:

“It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine - that is, they made no real money out of it. Men who can both be right and sit tight are uncommon.� –Jesse Livermore, “Reminiscences of a Stock Operator� by Edwin Lefevre, 1923

Don Coxe has been very right on his long term call (bullish) on energy, base metals and precious metals. Also very right on his negative call long term on pharma. You may not agree with all his conclusions but he has been someone willing to make non consensus calls and stick with them.

Among his current recommendations:

1) Overweight dividend growth stocks
2) Overweight base metals
3) Overweight energy
4) Overweight gold miners
5) Avoid any exposure to large cap Pharma
6) Buy LONG DATED TREASURY STRIPS (Bill may not agree with this one)

His recommendations and market review are available for free monthly under 'Basic Points'; he also does a weekly conference call which can be repalyed at the same site.

http://www.jonesheward.com/Commentary/p_Commentary.aspx

stockman-

I began re-reading Reminiscences yesterday. Now that I have been doing this (playing the game) since late Summer, his words are much more meaningful to me. Thanks for the note and the quote.

I think the next couple of days will be crucial for miners and gold. I can definitely see where some profit taking sets in. If by Wednesday or so things have settled down, I think you will be in good shape. Gold needs to consolidate here to be healthy I think. I actually think these point per day advances put the whole thing at risk. Sort of like an army advancing past supply chain support.

All-

On that important issue of Central Bank buying, the following:

www.asia.news.yahoo.com/051209/3/2c5lz

Before I add to holdings, I will wait for a correction. I am not expecting that it started Friday but am awaiting Fed action and market movement to evaluate.