THE MICIK MARKET LETTER
Gold & Goldies Update

Alan Micik
Dec 9, 2011

In our 12/5/11 post on 321gold ($1751 gold / $58.25 GDX), our case for “extreme caution” in AU was presented. The bottom line was that we are looking for “Fear” in order to add to physical gold positions and establish positions in the Goldies (GDX).

We have never advised selling one’s physical gold…only hedging it, when necessary. Currently, we have no positions in the “Goldies", but suspect we may buy them, soon, if Fear returns. You can read our “contrary view” article here, at 321gold.

We didn’t score points with 321gold readers for sharing this piece. That’s fine. It’s not a popularity contest. What was striking, to me, was that there was not one bearish opinion expressed in all the emails I received. For me, a long-term bull, that’s cautionary, and demonstrates that the 90% Bull readings noted in the 12/5/11 post above likely remains valid. Use it as a benchmark, along with the 90% bulls at $1850.

However, it is now possible that gold goes parabolic, with this type of sentiment. If so, it would likely mimic the ultimate run of 1979, and the possible culmination of gold’s bull market. Goldies would do well in this event. So, in spite of my concerns noted above, this editor awaits the “market’s verdict” over the nearer term.

Our readers will receive those updates where we would reverse our “cautious” opinion. Our first addition will be the Goldies, as they have been the “Dogs” in the PM sector. Further, the GDX has today completed its M cycle down on our work, so we fully expect to finally buy GDX when it matches our M Cycle up. We’ll patiently await that for that signal.

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Al Micik
email: atmmail@sbcglobal.net

The Micik Market Letter uses proprietary indicators combined with technical analysis, and contrary opinion. This letter is published when low-risk market opportunities are identified for the investor and/or the trader. Unlike other market reports, we do not have regular “publication dates”, as the markets create the dates of action, and thus the communication to our subscribers. This is a new 2011 publication, but the editor has 40+ years of market experience.

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