Monday, December 7, 2009


No not the Jay Leno kind but the ones that get slapped on my stories without my approval. Most of the time, the editors come up with headlines and synopses that are both more interesting than the ones I concoct but also serve to entice readers to click on the story. After all, in this business it is all about eyeballs.

But today, my proposed headling was "The Momentum Crowd Abandons Gold" meaning the "speculators" had turned tail like a bunch of lemmings. What I got was an upfront statement of my next upside target after the correction. I remember a headline in 2008 that read "You Heard it Here, the Banks have Bottomed." The horror!

Let's talk about the story. For starters, gold closed lower and so did the dollar. Yes, gold was off its worst levels but down is down, especially after a dumping like Friday's.

My point? Momo drove it up despite the dollar not moving for many weeks and now reverse momo will drive it down even if the dollar does not really bounce (I think it will).

When to get back in is the question.

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