Today a legendary short seller warned we may be about to witness a gold rush.
By Bill Fleckenstein President Of Fleckenstein Capital
July 25 (King World News) – The early going saw a split market from the perspective of the major indices, with the S&P and Dow higher while the Nasdaq was lower. The Dow was driven in part by Caterpillar winning at beat-the-number and the Nasdaq was weighed down by Google (and Seagate) losing at the same silly game. However, Google’s issues appear to be cost-oriented and thus its stumble was deemed to be company-specific.
With an hour to go, when I had to leave, a 0.5% gain in the Dow/S&P managed to turn the Nasdaq slightly green. Away from stocks, green paper was mixed: weaker versus the euro and stronger against the yen. Fixed income was lower and particularly heavy on the long end, oil popped for a couple of percent, and the metals were mixed, with silver flat and gold 0.4% lower…
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Turning to the miners, Newmont, for the first time in a couple of years, won at beat-the-number, but that didn’t have much carry-over to the rest of the sector. Tomorrow, Barrick, Agnico Eagle, Goldcorp, and New Gold will all report. I don’t see a reason for any of them to be unsuccessful, save maybe Barrick (given the recent problems with their African mines), but we will know soon enough.
There seems to be a fair amount of angst in the metals complex about what the FOMC communiqué tomorrow may reveal, but I really don’t expect them to say much of anything new.
Included below are two questions and answers from the Q&A’s with Bill Fleckenstein.
Question: Exhaustion? Yes, for sure but in the MINERS !!! What a pathetic bunch of losers!! Today,7/24 points this out very clearly, while the equity market chugs along in buy the dip mode !!! the only buy and hold miner folks are readers of this site!! this is really sad !!!
Answer from Fleck: “This is the fourth whiny email from you in three weeks. Either trade them (no one ever said that you MUST ONLY buy and hold them) or don’t own them. You need to figure out something to do so that you aren’t so frustrated.”
Question: FWIW, I’ve reached the point where I can no longer sit on the sidelines and watch the market churn higher. While I understand it should fall (and probably will now), I’ve thought this for too long now, only to see something come in to save the day before the point of reckoning hits. While there is certainly no shortage of catalysts, it just seems like the game of “kick the can” will be allowed to be played forever. Still holding onto my gold and miners, which allows me to still sleep at night.
Answer from Fleck: “My suggestion is to be sure about what you will do when the market reverses so that you don’t get trapped.“
King World News note: a 50+ year market veteran, who is a good friend of Bill’s that goes by the name of Mr. Skin, responded to the email above from Bill’s subscriber. Mr. Skin was pointing out that these are the types of behaviors one would expect to see near a top after a long rise. Mr. Skin’s entire communication will not be published here because that is strictly for Bill’s subscribers, but here are the last two sentences:
“This is why about 95% of self-proclaimed “investors” wind up losing money. Late to the party and grossly impatient.”
***To subscribe to Bill Fleckenstein’s fascinating Daily Thoughts CLICK HERE.
***The remarkable KWN audio interview with Gerald Celente has just been released and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: ALERT: All-Time Record Silver Short Covering Continues! Plus A Look At Gold! CLICK HERE.
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