Big recovery today from trading as low as $639. Without directly addressing gold, the Strafor.com link to the right is a must read and gives a greater understanding of why gold has managed to run back to these levels in recent weeks even as the dollar as drifted in the $1.30 area vs the Euro.
As noted earlier in the week... it was just too obvious that crude was supposed to tumble below $50 to enrich the crude future put holders. It's trading this afternoon above $55.
As further noted this morning, energy stocks (XLE) were seen by me as an important ingredient needed to give the rally legs today in the stock market since names like Yahoo and SUNW were weaker names that needed some help in the leadership area, and that's what we're seeing this afternoon. It looks as if the S&P is finally breaking out of the recent range to the upside and perhaps this opens the door for a run up to the 1450 area. But watch out, especially if gold can make that break above $650 and then to $680. I've almost completely transitioned away from short term stock market trading (but will continue to keep a close eye on things), holding mostly long term core stock positions, in favor of commodities futures and forex; and that's where I'll be concentrating my efforts, both long and short in the coming weeks.