ML,
I agree with you on the inaction. Saw this somewhere: “Cash is also a position”. I’m trying to put a little more cash to work, maybe using up another 15% to 20% of my 50% cash for probably energy stuffs. It’s just a hunch. I am starting to feel some unease, and I’m afraid that the unease will turn out to be a big rout in the stock market caused by rising crude oil & political situations. This worry is like an unspoken fear in the market. Some people take actions. Some people hope that things resolve in a good way. But my hope is getting dimmer. If you chart out the course of the general stock market and the PM/energy market, such happenings will totally be a natural extension of the current charts, even though I really don’t want to see the general market to keep going down further.

Agree wholeheartedly on sentiment and sentiment indicators. I place a lot more weight on vix and put/call ratios than bull/bear surveys, as the former is derived from where people actually put their money.

I’m not eager to do anything in this market. Either PMs or the general market. Sometimes doing nothing is the hardest thing to do. You have picked the recent bottom in gold very well so you can probably sit back for a couple months.

ML

I think it’s important to take a step back and think rationally and logically, and if done with conviction, those two can eliminate emotion.

-Grant
TheCornerOfficeBlog.com