We have been bullish, as our competitor Dennis Gartman, likes to say “of Gold” for a long time. In fact, YouTube fans will recall that we wrote an Early Look strategy piece titled “Short Of Garty” on 5/15/09, emphasizing our bullish long term view.
For old time’s sake, here’s an excerpt of that note:
"Thinking well is wise; planning well, wiser; doing well wisest and best of all."- Persian Proverb
Of course I am not "short of" the man. As all Early Look titles go, we have to have some fun at these un-Godly hours of the macro morning. Dennis Gartman is one of the great grinders of the early morning gridiron. The investment community is a better place with him in it.
This does not mean, however, that I need to subscribe to the panting dog nodding that CNBC's Fast Money's producer must force his "Traders" to look into the eye of the camera with when listening to the Gartman gospel. Someone has to hold the members of this circus act accountable. The American Financial system is being YouTubed by the world, daily, and it's just too embarrassing to know that The Client (China) thinks that this is what US investors do.
So Garty, lets slap the ole red, white and blue accountability pants on and take a walk down the path of a few positions that you are currently "short of", The Dow and Gold:
1. I have also been "bearish of" the Dow via the DIA etf, but covered my position
2. I am long Gold via the GLD etf, and remain "bullish of" it
Today I am selling ½ of the position we currently hold “long of” gold in our Asset Allocation Model. No, we are not “bearish of” gold. But we are “bearish of” the crowd when they bubble an immediate term price up like this into month end (Monday).
Our immediate term TRADE (overbought) line for Gold is in the chart below ($1190/oz). You can buy it back in the shaded green range we have highlighted below ($1103-$1142). Gold is finally getting Bubbly.
Keith R. McCullough
Chief Executive Officer