Morning Update

Checking in on the position and the markets really quick. Gold price appears to be hanging in there in the $550s. I would like to see it retest the $570 level as I think it would allow me to book a nice profit on the Hecla trade in a relatively short period of time.

I am still really interested in the short side of things, but appears unwise, as new bull market is starting to spread its wings as shocking as that may seem. Indexes are at 52 week highs and stocks are reporting record earnings. We have apparently not reached the cycle peak yet, although we must be getting pretty damn close with the prime rate at 7.50% and two-three more fed funds hikes on the table.

Check out the following charts as what my gut is telling me would be great shorts by the end of the year but are still outperforming in the meantime:

Freddie Mac:


XLF (Financial Sector ETF):



MGIC Investmente (mortgage insurer) (MTG):

The above are charts of the some of the problem children or future problem children that I anticipate based on sectors to stage a decline over coming year. Still if bull market is beginning again (no matter how short lived even - 2 or 3 months) - I will not be short........anything.

That begs the question then of what can we be long? I still like precious metals. I love that PDLI chart as well and am watching for a breakout on volume abovfe 32. I need to find a few more good ones on the long side - but I will keep everybodyposted. Suggestions are welcome.

Best regards,

BG