Thursday, October 19, 2006

Happy dance

No, I'm not referring to the Dow 12k. The day had a nice start as Accredited Home Lenders (LEND) that I'm shorting announced a profit warning pre-open. It went on to lose 11% on the day, while its cohorts in the mortgage lending space WM, CFC and especially NEW all declined 3-5% in sympathy.

It was almost too much that gold and gold stocks should also have such a strong day today: a gain of over $10 for gold and 3.7% for the gold bugs index. Being still fully invested and resigned to the volatility of this gold bull, I'm not going to jump up and down scream "buy", but the momentum on the weekly chart does look favorable. In addition, with OPEC ready to cut output, I'm hoping that gold price may take some clue from oil.