Hello Trombone,Gold completed a target move 50% retracement of...

Hello Trombone,

Gold completed a target move 50% retracement of fall from 1920 to recent low. Equities also sold off, hence the weakness in the XGD. My Funds (A&B) sold off 50% of total position as the last XGD high was reached and lightened off again Friday a little. I was half expecting that move.

I have been following a gold pattern recognition that has accurately predicted it so far over the mast month however I wait to see if gold can push to the 61.2 retracement level or not.

If my 'read' is correct we are heading back down on gold but AUD to fall as well so gold to hold up in AUD terms for NFG revenue. The wider equities rally is based on relief, hope and the spin of the EMU plan which now has to see the details fleshed out. Traders and investors are understandably wary - the selling has nothing to do with NGF or the sector in my opinion.

The debt desk does not talk to the equities desk and this can mean the equities rally while bonds crash - a neutral Friday session last night for stocks, bonds rallied on safety ...so natural course of events (local news and micro issues) can transpire Monday on the ASX.

I am going to talk to management about the quarterly next week and will do a post if you guys are interested in my thoughts. I believe a more formal release of my NGF report is imminent as well and hope the "truth out" communicating the real story increases awareness of what NGF are achieving and the relative value.

Take care all.
CW
DYOR&DD
Additional disclosure: Position is in the GOz FundA. Sentiment is longer term am not sure what is going to happen shorter term to the general market.