Grandich Observation

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Posted by Peter Grandich

on Tuesday, 18 February 2014 04:55



U.S. Stock Market - To those who have yet to greatly lower their equity exposure, a thank you card to Yellen is recommended. On nothing but hot air and worsening fundamentals, she sent the “Don’t Worry, Be Happy” crowd into high gear and their little lambs followed them.

If for some reason they managed to “pied-piper” all the way to a new high, yours truly is set to suggest to the general investing public to short the U.S. equity market. This is one thing I could find myself being on the same side as George Soros.

U.S. Bonds – I think we’re likely to see a broad trading range of about 2.40% on the low side and 3% on the high side for the 10yr. T-Bond for the foreseeable future.

U.S. Dollar – Once again the hardcore waving of pom-poms for the U.S. Dollar has failed to get the dollar out of its sick bed. Mind you, the inability to rally in the face of the FED tapering while most other major currencies monetary policy remains loose, strongly suggests the patient illness is going to get a lot worse.

Gold – After breaking through key resistance, it’s quite natural to see a pullback especially since on the daily chart we were overbought. The key is where we finish by weeks-end. I believe surprises for gold and silver shall be to the upside.

My two extremely large speculative (please never forget the word speculative was created by Wall Street so it didn’t have to say gambling) positions have done well, but both are overbought and due a pause that refreshes.

Sunridge Gold has reached and overbought reading above 70. Management has told me that the M & A side of the business is in high gear. They shall continue to work towards going into production as these talks continue. I like to recommend you avoid reading much into chat sites good or bad. Sending me comments from posters who don’t have a position of any type but constantly post on a company tells me their intentions are less than honorable. If I wanted to save the world I find better ways than posting regularly on a stock board where I’ve no interest long or short. If you must go to these sites, I strongly recommend the ignore feature.

Teranga Gold is quite overbought but has managed to sharply rise despite it. Long term I’m speculating it’s going much higher but an occasional air-pocket in this technical condition shall come as no surprise.