Don't Back Up the Truck Yet!

Deliberations on World Markets (10/29/2008)
"For those that have held back on rebuilding gold share exposure, I think this walloping provides an opportunity but don't go chasing them on days when gold is up. For some that I know who tend to overdo it, don't back up the truck and use the margin just yet...too early for that in my view. I want to see more evidence of the Dollar rebound rolling over, as well as a little basing action on the individual charts...

One reason for attempting a little javelin catching on gold is the latest Market Vane Bulls number, 54%...I would have preferred even lower, but the downside spikes over the course of this cycle have tended to rebound quickly from the 50% area. Yes, in spite of the price damage of the past 6 months, I continue to believe in the secular up-trend case."

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