Originally published by Chamber of Merchants
The reversal strategy paid off today. I’ve taken some profits on some of my positions.
The intention is to increase my holdings in a few hours due to the robust behaviour of gold.
I would like to point out that the stock market has gone parabolic, the yen is weaker, the dollar is stronger yet, gold is holding around $1245-$1250.
In fact, the heavy correlation between gold and the yen appears to be breaking down.
If we’re heading for a stock market correction, then I’d like to be in gold, thanks.
Below is the Dow Jones Industrial Average now above 21,000. Can you say “Tight Rope Artist”?
I don’t know when it will correct, but I can say that historically speaking, every rally comes to an end when you run out of buyers.
Gold would be the primary hedge against a correction. This may be the reason gold’s safe haven purchasing appears to be ramping up.