Thoughts on KL today, Gold, the market, etc.KL dropped less today than many stocks on the exchanges - it was a brutal day for some.
They didn't hold the 61.8% Fib Retracement, but, that's just an indicator. I would have been estatic if the price had closed above $44.75 (can), but I am rarely estatic these days.
Gold companies are interesting beasts. In the first quarter of a severe downturn they write off all their bad assets and show terrible earnings. In quarters when the price of gold is riding high they process all their garbage so that they're into the highest quality formations when times are tough.
Tomorrow is Friday. It is the end of the month. There is book-squaring going on, that mysterious exercise some take to show how responsible they have been over the course of the month. Shorters get concerned in the afternoon and some take profits, driving the price higher. Those driving the price of gold down may take the afternoon off, not knowing what comes Monday morning.
I am glad I am a long buyer at the bottom. I have never shorted any stock or commodity. I can't imagine how shorters sleep at night, not knowing what tomorrow brings. (I doubt that any shorter loses sleep over driving the price of "Granny's" stock down - they can't possibly be wired that way.)
Anyway, I think we may have a little bounce tomorrow. Some may think that it will be the "dead-cat" variety. I have no idea.
cleareye.