- Yesterday it looked like the Dow’s winning streak may have come to an end
- We were up 10 days in a row, which was the biggest winning streak since 1987
- The Dow was down 50-60 points for the entire day
- It opened down and it stayed down until the very last hour, it started to rally
- In the last 15 minutes it managed to eke out a positive close
- To extend the winning streak to 11 consecutive day
- And of course, another record high for the DJIA
- For those bitcoin fans out there, I know a lot of you have given me crap because the price of bitcoin has gone up and just this week it got back above 1200, getting close to the price of gold
- Gold was up again this week, it got as high as $1260
- Remember on my last podcast I said we were building up a lot of resistance around $1240
- And I thought we would take it out and then we would see a little bit of a jump
- That’s exactly what we did
- We closed at $1259.60
- An observation, though: gold stocks were down in general on Friday; they were also down on Thursday
- In fact, they had a sell-off at the end of the day
- I think the last 2% rise in the price of gold – we’ve had about a 4% drop in gold stocks
- Gold stocks rose early on, and they did a very good job of forecasting this gold rally
- So, the question is, are the gold stocks now accurately forecasting a sell-off, a profit-taking or a correction?
- That’s possible, and if that is the case, I think that is a great buying opportunity because I don’t think the correction will be very long-lived, or that deep
- And I do expect much, much higher prices later in the year
- But it’s also possible that this skepticism on the part of gold traders
- Obviously if gold traders have been selling gold stocks these last several days, they thought that the price of gold was topping out
- So far, they’ve been wrong, because gold prices continue to rise despite the fact that gold has been falling for over a week
- Maybe they’re not wrong; maybe they are just early
- Maybe they’re just getting out early and a big gold drop is coming – we’ll see
- But it’s also possible that this is just a healthy degree of skepticism
- That gold is climbing this wall of worry and in fact gold stock traders are now so worried that they’ve been selling their gold stocks even as gold keeps rising
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