The best possible news for gold longs has finally arrived, courtesy of the man with the golden market-timing, no pun intended, newsletter:
SPOT GOLD: Runnin “Smack” Into Long Term Resistance: We turned supportive of gold several weeks ago rather publically [ZH: sic], but now gold in US dollar terms is running into what we fear shall be formidable resistance… with the margin clerks around the world looking to sell gold to raise liquidity as stocks come under very real pressure.
Oh, and just in case you were scared to keep shorting oil...
CRUDE OIL PRICES ARE LOWER BUT WE ARE CHANGING OUR VIEW ON PRICES for having been overtly and rather relentlessly… and very publically… bearish, we are this morning turning bullish of crude oil and we are turning so because the term structure shifts mandate that we do so.
* * *
We do not make this statement lightly for this is a material shift in our view of the energy market… a very material shift.
* * *
Amidst the carnage of the global stock markets this morning and even in light of the sustained bear market in crude oil, the narrowing of the contangos in Brent and WTI brings us to become a buyer of crude as noted at length above. We’ll buy a unit of crude oil, split between Brent and WTI, upon receipt of this commentary. We shall, for the moment, give these prices the latitude to move 3% against us, hoping that we can tighten that up when we return Monday.
Thank you Dennis: we couldn't possibly do it without you.
