The title of this post is a play on the Yahoo! Finance video Wait for Further Pullback in which Jeff Macke asked Options Monster founder Jon Najarian if this rally was the “real deal“.
Najarian says gold is looking good so far but it’s still locked in a range. Where others see resistance in the $1,325 area, Najarian is more optimistic. “It was $1,425 in June of this year. I think that’s the next stopping point.”
Najarian says the trade here is to chill and wait for a pullback. If it gives up the ghost again and drops below $1,300 he’s a buyer. If not he’s happy to let others chase.
Gold “Looking Good” So Why Wait?
Najarian says “gold is looking good“. He also thinks “$1,425 is the next stopping point“.
But low and behold, Najarian wants another pullback to $1300 first. Good grief. Why does anyone think they can time anything to that degree?
I suggest it cannot be done. If you think $1,425 is the next stopping point, does it matter that much if you buy at $1300 vs $1325?
Here’s the deal: I do not know what the “next stop” is for gold, nor does anyone else. What I do know is that micro-managing entry points, hoping for a $25 pullback when you believe the price is headed $100 or more higher is silly.
By the way, I also think “gold is looking good” here, but I am talking my book as well as my belief. That aside, I am pleased to see all these wimpy bulls. One of these breakouts is going to hold, and I will not be hoping for a pullback when it happens.
Mike “Mish” Shedlock
