MARKET COMMENT
February 21, 2007
I did point-out a “gold smackdown”
just yesterday didn’t I?
Fed Governor
Susan Bies also said just yesterday that everything with
interest rates, inflation, housing and the economy was just dandy didn’t
she?
This is another example of why predicting the news cycle and
markets is a silly and unreliable effort.
It just shows why putting your ego aside letting the markets tell you
what to do is, for me anyway, the only way to go.
Now we could just leave the charts above and make no further
comment since these for us are at the heart of the matter today.
But wait……there’s more.
Overseas conditions are more inconsistent than
previously.
Much of this has to do with Iran, holiday thin trading in Asia and Latin America and commodity market volatility.
Today investors were of two minds: buy some stocks and some
protection.
So gold reversed course and
with it crude oil.
And, sure, if there’s
some kind of geopolitical event with Iran and the US over nukes or Iranian killing
of American boys in Iraq then the two will be “linked” period.
We continue to adhere primarily to weekly analysis which
means you have to sit tight through some volatile conditions.
And, if nothing else, this short week is
carrying a lot of entertainment value if you’re on the right side of things.
The other important part of being disciplined is not getting
too smug about your positions since Mr. Market can make you look stupid
fast.
Nothing could be truer than
dealing with commodities whether of the ETF variety or being leveraged in the
futures market.
Silver still gives me
the “willies” since one way or another I’ve traded it before the Bunker Hunt
debacle.
I often tell the story of being
at a conference in the mid-80s and bragging about my silver position going into
a meeting.
When entering the meeting,
silver was hitting $12.00 and my cost was $9.00.
When the meeting was over two hours later
silver was $8.50 and I sulked off to my room for a stiff drink.
“DOH” is right!
Have a pleasant evening.
Disclaimer:
Among
other issues, the ETF Digest maintains positions in: GLD, SLV, GDX, DBP, QQQQ,
SPY, RSP, IWM, UWM, MDY, MVV, FDN, IGN, PZI, EFA, EEM, INP, EWC, EWA, ILF, FXI,
EWJ and EWM.