Mixed Signals on Gold

Yesterday, in one of my publications, I put out a support level on the front-month gold future at $848. Gold came down to $849.50. Is that "close enough for government work"?What I said was I'd consider buying at 848. And if gold breaks that, the next support levels/buying opportunities are 813 and 781.

However, MACD, a good momentum indicator for gold, just gave a pretty strong sell signal. So, we have mixed signals on gold.

Let's see how things go today. We may look back and say yesterday was a bottom in gold. Or, we may have a lot further to go in the selling. And as one of the experts at the Vancouver Resource Investment Conference said this weekend, "even good companies can be bad investments" when the major indexes are going down.

I'm glad I recommended some bearish hedges in Red-Hot Canadian Small-Caps and Red-Hot Global Small-Caps yesterday. As for Red-Hot Resources -- with all this "divine" intervention by the Fed and other government agencies in the wings, it's actually harder to make very short-term moves. The President could come out and say something* that might send the market up 200 or 300 points.

This is a "watch and wait" day.

* "I resign" would be a good start.

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