It's Difficult to Be Bullish When There Are So Many Reasons to Be a Bear

However, maybe that’s the biggest reason to be bullish? All of the major sectors that drive the economy look like they’re about to roll over and die. I realize that government intervention never works, but are things really that bad? Bear markets really are a different beast to trade and it’s no wonder most people lose their shirt.

Big distribution day on Tuesday.

Fresh week one breakout to the downside on a weekly view.

Doesn’t look like many products are being shipped anywhere.

And my favorite sentiment indicator is still in major bear territory. Another big up day will have this is shouting “short the market.”

I entered a few shorts yesterday and I’m essentially flat on those trades and exited out of my USO trade not because I think it’s going to head up, but I wanted to take my profits while I had them.

I think I’ll spend today observing how gold digests it’s big gains from yesterday as it should pull back. I’m seeing a lot of speculative gold/silver companies (RBY, EXK, VGZ, UXG) had huge days yesterday, and when those type of stocks start to move it might be time to take some of your gains off the table because they’re due for a pullback. However, I think gold’s current rally will have some legs given the strength of the move, but a short pullback will be very healthy.

Comments

[yellowhoard:]

Looking for gold to consolidate here and then move higher in March as investors take physical delivery.

Feb 12 08:31 AM

[S. E. Wells:]

Well, I don't know about EXK, VGZ or UXG but there is a reason RBY moved yesterday. I've owned several thousand shares for a while and follow the company closely. The reason RBY moved is major new intercepts of bonanza grade gold mineralization at their Phoenix project in Red Lake.

They went up because they are well-capitalized for the exploration they are doing and they have a major gold deposit being proven out. Gold is good but grade is king. They have the grades and are proceeding intelligently and prudently in managing their project.

Feb 12 08:33 AM

[James Wilson:]

Shorts need to back off and let the market recover.

Feb 12 08:58 AM

[investor88:]

Fundamentals are bearish no doubt.

Feb 12 09:10 AM

[GMiki1:]

They have to reinstate the uptick rule. Should have been done already. UXG is popular and a great stock. So are a lot of the juniors but they don't have the name factor. But they will pick up. Some nice activity among them. Mountain Lake consolidated some gold holdings yesterday. (I hold it but it's not my primary pick, though I like the ocmpany.) I can't believe these traders sell some wonderful stocks because silver is down a few cents today. I think this day trading is where the problems are--our manic society.

Feb 12 11:16 AM

[Liquidspaceman:]

RBY is up because of a report showing more bonanza-grade findings at their Red Lake property. This stock has been beaten down since the market took a downward trend but people are realizing the true value of this stock and starting to take notice. I don't think there will be any big pullbacks for RBY in the forseeable future because the gold is there and every day it's being proven that it's there. Not just quantity, but quality.

Rob McEwen is developing the RBY story just like he developed the Goldcorp story. The stories are playing out the same way with the property even in the same area as Goldcorp. I'm not saying it's a sure thing because there are no such thing as sure things, but this is as good as you're going to get with a Junior explorer.

But don't believe me. Do your due diligence. Read the reports for the past 6 to 12 months. Look at their current price. Does it look like a $5 dollar stock in a buck fifty wrapper? It does to me.

Feb 12 03:08 PM

[bang:]

Spot on, agree grade is king and is cash!


On Feb 12 08:33 AM sewells wrote:

> Well, I don't know about EXK, VGZ or UXG but there is a reason RBY
> moved yesterday. I've owned several thousand shares for a while and
> follow the company closely. The reason RBY moved is major new intercepts
> of bonanza grade gold mineralization at their Phoenix project in
> Red Lake.
>
> They went up because they are well-capitalized for the exploration
> they are doing and they have a major gold deposit being proven out.
> Gold is good but grade is king. They have the grades and are proceeding
> intelligently and prudently in managing their project.

Feb 12 04:22 PM

[PeteK:]

Mr. Pierce,
Why you want to sat "They are due for a pull back" ?

Feb 12 05:25 PM

[PeteK:]

Mr. Pierce,
Why you said "They are due for a pull back." ?
Sounds like you are telling people the sky will fall next week.
Not nice to write things like that.
Bad tactics.

Feb 12 05:28 PM

[Jeff Pierce:]

I'm not trying to write nice things. I'm trying to offer insight into the short term price fluctuations of stocks based on my experience. A pullback would be the best thing for the long term health of this gold bull market.

Feb 12 06:03 PM