Sunday Musings

Just a quick note for those of you who decided to come back here before Wednesday's post.

I checked the commitment of traders' report for gold and it has gone very bearish for those of us in the precious metals sector. We are not prepared to sell our little gold mutual fund, BGEIX, but we wanted to let you know that the building blocks for higher prices are not under the market as they were a couple of months ago when we got in.

The basic idea is that we don't want to fight against the commercials when we decide what to do with our positions. They are now heavily short and we would be foolish to stay at this party too long in the face of their positions. If the metals give us another pop in the next week or so, please take your profits.

One other thing you can do to find out what is going on there is to read the True Contrarian link to the left. He normally posts a new message on Sunday evening but not always, sometimes he posts on Monday or not at all. He will probably be more bullish than we are but it would give you a good sense of what is going on the precious metals market.

Have a great week and we'll be back in a couple of days. If something happens in the next two days there should be a post on Tuesday evening but, if not, we will post on Wednesday evening.

You know our position--stocks peaked in early August and all rallies should be sold. We will be especially watching for a buying opportunity in the fall or should we say autumn after the fall.

See you back here in a few days...

Dow Industrials: 10,559.23 +4.30 (wow)
BGEIX: 11.62