I just sold all my UBB(Upper Bollinger Band) and put the proceeds into LBB.

I remember asking myself several years ago, when gold was comfortably over $1800/oz, why the precious metals equities were generally so painfully anemic in their response to this steady increase in price. The wisdom at that time was apparently simple: although gold prices were rising quite dramatically, the corresponding cost of energy was also rising, and so net profit per ounce was mitigated by increasing mining costs despite an environment of rising commodity
price. Here we are today, with oil input costing miners a solid 70% less to run their operations. Lets also factor in the general notion that oil prices will likely remain flat if not fall further over the coming several months.

And so here is what really bothers me: With gold prices flying high several years ago investors appeared to be wary about the increasing cost of energy on the corporate bottom line and whether or not this increase in the price of gold would be sustainable. Even the blue chips never really took off. So today the price has come off in a big way (ostensibly near a bottom) and energy is decimated. If the wall of worry was so high because of increasing mining costs 4 years ago then why can’t there be a mild euphoria now that primary cost of mining has gone through the floor (a lower price in the commodity notwithstanding) ? In this sector I get the sense that bad news is typically horrible and good news is never good enough.

Great dialogue guys. The gold chart is a bit wishy washy. Doc, checkout the 12 WMA on the weekly. It’s heading way south. The weekly chart looks like two weeks down, 1 up and then back down she goes…

Doc, what are the chances that we see the 10yr bond yield surpass the 30yr bond yield?

And on gold I got stopped out of NUGT in no time flat on Monday and DUST is a no buy on the chart. Miner bull and bear dancing a tight range bound dance.