Millbuster, I think with due respect, you should look at trends more than trying to join very rubbery fundamental dots. It is no surprise to see that QE is making stock holders filthy rich in the 4 corners of the globe. Gold on the other hand has been trending down.
I am just trying to cover a few bases. There is value in getting good gold stocks and not the ones that requires a kick up the backside regardless of cheapness! In addition, a strong trend usually continues as it is human nature to 'think' it is over valued. Just as at the height of that destruction in March 2009, the indices staged a big comeback in the direction of the trend.
I am comparing the monthly chart of sp500 and gold/usd and I have to admit there is no stopping the US indices. GFC destruction looks like a deep retracement but the bull trend resumed. Gold/USD has meandered for 3 years now aimlessly. I just dislike the lower highs formed so I offer no prophecy of doom talk which I think is a highly improbable but not impossible event.
Gold intraday made a weak attempt (short covering) from the sell down in response to the US data. Not the best of time to be taking new positions and especially on a Friday night intraday positions. Any other day I would be shorting into that dead cat bounce rise.
