The Line in The Sand…..Update, Moving money into tech heavy sector
The initial reaction to the Stimulus bill has been for the market to push down stocks and push up gold. The pessimists may be right, but they will have to prove it to us. So as a test we are selling out our gold and gold ETF positions early this morning. Basis spot gold we were buyers of these positions in the 700 and 750 area, sold out half in the 890 area and the market this morning is in the 940 area. To us if the initial stimulus works, gold becomes an inactive asset that plays no part in the economic activity.
The EMA ETF NAV was 989 at yesterdays close.
8:18 AM CST
Update at 9:13 AM CST Money from gold sales being put into QLD (double long NASDAQ)
Update at 10:15 AM CST OUR THINKING…..the energy/green build-out will need efficiency in 0rder to be successful (it has to compete with $ 30 to $ 60 oil, not $ 150 oil) , that means technology will be at the forefront. While we will say again that we don’t do research on individual stocks, the energy/green/infrastructure build-out would seem to point to stocks like FLR,CAT,INTC,CSCO and many others with comparable orientation.
Bookeeping update at 11:40 AM CST: Today for the EMA ETF Fund, sold GDX at 36.04, sold GLD at 92.98, bought QLD at 26.70