Well, they didn't find their second wind and the bias has turned negative now. I would look for some kind of bounce over the next hour or so and will look to take some short exposure once again.
As you are aware, I've been accumulating the precious metal stocks for a week or so now thinking that an intermediate term bottom is in. I've added some more this morning. I'm staying away from most other stocks due to my growing negativity that we are slowly reaching a rollover point but I like the metals. One thing has been clear of late and that is that the profits these companies have generated of late came on the back of increasing pricing power ... in other words the ability to pass on costs. That eventually will show up as inflation even with the government continuing to discount that away through their increased utility/price depreciation models they use to calculate CPI. What a farce that is.
As you are aware, I've been accumulating the precious metal stocks for a week or so now thinking that an intermediate term bottom is in. I've added some more this morning. I'm staying away from most other stocks due to my growing negativity that we are slowly reaching a rollover point but I like the metals. One thing has been clear of late and that is that the profits these companies have generated of late came on the back of increasing pricing power ... in other words the ability to pass on costs. That eventually will show up as inflation even with the government continuing to discount that away through their increased utility/price depreciation models they use to calculate CPI. What a farce that is.
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