Hi Bill,

Could you please elaborate on your "double whammy" comment? I think I caught what you're getting at, but since I'm long both GG and SLW, I'd like to be clear on my interpretation.

Thanks.

Since UBS is posting a 'BUY' on both, I take it to mean a good thing. But I feel as Fazeli does, if you did not read the UBS report, Bill's statement seems negative.

Long GG & SLW

By "double-whammy" I think Bill means the combination of analyst upgrades (due to analyst meetings) and higher metal prices.

I'm long SLW and GG too, though not happy about being diluted by the Glamis merger.

That is one NERVOUS gold chart boys. Never seen anything like it. 640 is one heck of a hurdle for it it seems. Either that or it is afraid of a CB thwacking hereabouts. Let's see what tomorrow brings. I really can't tell.

Yes, one got the sense today that gold and oil were just 'itching' to bust out - but they did not.

The Fed must be noticing this - as on Friday they pulled liquidity from the market.

But then after 'Black Friday' came 'Red Monday'
and so Ben blinked and tried a coupon pass - but few were willing - and only a small amount was accepted.
Perhaps the money centres were too busy selling their stocks today??

They tried to pump the S&P around 1:30 and 1:45 - but that was not much use.

Regarding oil and gold:
Perhaps a lot of today's action in the oils and golds had to do with these 2 things:

(1) Peace overtures between Israel and the Palestinians.

And even more interesting was this PR

(2) Today 03:28pm
"White House: President Bush and Iraqi PM Maliki will discuss possibility of US talks with Iran"

So I don't think this kind of talk helps those who like to buy gold and oil based on 'fear' - which many short term traders try to do.

I also suspect funds were liquidating oil stocks and gold stocks this afternoon to clean up their books for the end of the month/year.

What I was wondering though - is peace good or bad for the US dollar (and hence gold)?

One could argue in a strange way that peace could be bad for the dollar - as no one needs a 'safe
haven' anymore.

But one could equally argue it is good - because the debt and military spending would be reduced.

Better to let price be our guide - but it always pays to keep an eye on these 'fundamentals'

I sold today. Buyers were aggressive.
A dream come true.

Waiting for the next pullback...

$640 is the line in the sand. If gold powers through then we go up up and away. HB&B have to put that money somewhere after distributing to the masses and smaller sharks. Bonds, gold and oil seem like the obvious place.

CNBC was too funny today. All day pump, bashing Walmart and praising the great consumerism of Americans. What a joke. Only white collar america is buying this year and even that will be muted since they can't sell the second or third house.

Bill
My father, Algernon, was a very successful eye surgeon in NYC.
He used to say that the definition of "minor" surgery was any surgery performed on someone else.
Major surgery...anything performed on you.
The good news is that your leg is a good distamce from the heart!
Not trying to make light, just trying to keep you positive.. and with us.