What's going on? It's like the table has opened, the wheel has been spun and the cropier has just said "place your bets!" The flood of cash into all these somewhat contradictory investments will not continue long IMO.
Who will win?
I have to say that I think the Gold Bulls are having a final fling. And their rally may be again about to run out right on the $352 resistance that I have been talking about since Gold moved above $329. There are too many Large Specs in the Long Gold camp, and Friday's worries about what could happen on the weekend are not the stuff upon which to build a strong bull market.
This gold market needs a correction IMO. So I am selling heavily my Gold producer stocks. I will admit that I am holding onto my cheap gold explorers "just in case." 'Cuz anything can happen.
Stocks look like they have nearly finished 5 waves up: 869 to 911. A 50% retracement would take us back to 885, and that's my target. After that, I think the next rally will run a week or two and may show us if 920-ish will be the top (as ZBZ has suggested) or 960-ish, which is my own (current) target.
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