Two sad pieces of news overnight..Monkee Davy Jones (I am standing up)has died aged 66..thanks for the memories.I know they were a the “Pre Fab Four” but nonetheless brilliant and gave us so many great songs.(Or rather Neil Diamond and others)
The other piece of bad news was the Gold price, Especially after I went on Sky TV last night and pronounced that $1800 was well within grasp and it was just a matter of days!!Shows you what I know!Doh….Last night Uncle Ben said diddly sqwat about any more easings and the Gold price took a bath,US dollar rose…So did the silver price which was down 6% as well.It looked like the World and his wife were long and a foregone conclusion that 1800 was going..just shows what happens when we get those crowded trades.I expect in the next day or so the price will start to climb back up.
Last night the Free money game was back on with the ECB being swamped by 800 banks for the free money.Well over half a trillion(remember when that was a lot of money) was printed!Now that has to be good for Gold..can’t print that..For those like me who think that the whole ECB thing is a giant Ponzi scheme ,I would urge you to type Punk Economics into your favourite search engine and watch the youtube clips.They are very good from a leading Irish economist..now there’s an oxymoron!
Yesterday we failed to sustain the 4300 level yet again and today we will see a retreat with resource stocks and especially Gold the worse affected. The Dow could not hold 13000, so I believe the market is a little tired.We have been through the reporting season and although OK ,there was nothing to really shoot for in the next six months…the last two months in this market have been very lucrative but as Julius Caesar was once warned..beware the Ides of March…not a time to turn your back!
I talked last night about some of the current market darlings in the shale gas sector..BRU NSE COE OBL and SXY( I’m a believer)..all these have had great runs over the last two or three months and should be on your shopping list if and when they pullback..I sold my BRU this week and am looking to reenter around 1.80 for the run back up to 2.50..
The performance of all asset classes in 2012 has been pretty darn good and for those who were brave before Xmas and picked up the cheapies, you have done well my friends..I sense however that things get trickier from here for a while and we may need to consolidate the gains..still what do I know I thought Gold was looking good!!
The Market will lose 1% today as end of month buying abates and reality bites.The really spectacular gains in the last two months have been in mid caps and small resources..things like BTR which has two projects in Africa have doubled…trading at 1.40…amazing..just shows what a good drill result can do…
For those who have missed out on the gains in 2012,time to be patient and watch things slide back.
I am waiting for tradesmen today so working from home..mobile is 0414345137 if you need to contact me otherwise Andrew Mc Killopp is the man on the desk..
“When I needed sunshine, I got rain.
Then I saw her face,
Now I’m a believer”
Davy-Love yer work!
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