Saturday, January 18, 2014

Market Bids up Miners

Barrick Gold (ABX) Weekly chart - 18.77

After two years of cost overruns and sinking gold prices, 2014 has started off with a reversal in tactics for Barrick Gold.  Old management is on the way out and new management is coming in.  And while ABX earnings are still nearly four weeks away, it appears that the market is expecting some positive news for this gold and copper miner.  The fact that gold and silver prices are starting to come to life also help.
Another item of note is the negative action of Emerging Market Stocks.  South Korea is already down 6% this year.  Russia, China, Brazil and others are also down.  Is this merely the results of a strong dollar?  Or is there a rotation in the works?

Perhaps a precursor of things to come?  Will the US markets ever crack?  Only time will tell what this means.  My guess however is that the Dow will rise stunningly before this comes to an end.  There are still trillions of dollars sitting on the sidelines.  One thing that over 40 years of market watching has shown me is that the market will find a way to take every penny you have.
When you see the Dow double or even triple from it's current level, sell everything.  Leave the country and go to some island that doesn't yet have CNBC or Bloomberg.  It's the only way you will be safe!
More to come. . . 

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