Gold and Inflation

Seems that the CPI number rankled a few feathers yesterday and got people nervous again about a possible rate hike, which I have thought for awhile was a pretty good possibility come this spring. Higher rates are not good for the mkt and with this market leaning into the mistaken belief that the Fed's next move is a rate cut, not an increase, we got a reason for the market to take a dip. The move in gold yesterday was quite a move, and can't in my opinion be explained simply by the CPI number. One trader has suggested some geopolitical problems as the genesis of the move, but as yet we haven't had anything big hit the wires.

Mkt is tough to read and fear is palpable. I have bought more WTS and GR on this dip and am looking for a place to buy more BA, but would prefer to do it about 50cts to a buck lower, should we get a late day sell off. I am about 60% invested, and while recent history has suggested that you should buy these shallow dips in the market, it is difficult to do. Rather than buying, it is tempting to sell some stuff to lock in profits...

On Monday I mentioned WCI and how I like to trade extreme moves. I sold the last of my shares at 24.16 on Friday right at the close and that stock is down today to 22.18...the question is, where does one get back in. How low can it dip before it should again be bought? I may take the first shot, maybe a 1/3 position around the 22....

Yesterday I sold my GSF within minutes of the big rally and left 3 bucks on the table. I also sold my AUY position, within minutes of it rallying 60cts. I also covered my BWLD short and of course today that is much lower. Sometimes it is better to sit on your hands and believe in your original premise....

My developing plan for when I need to buy a little portfolio insurance is not to sell the stocks that I like, but to buy some QID or SDS to hedge a portion of my portfolio.