We sold NUGT at the market this morning at a minor gain. Two factors played in the decision to sell even though we just had a buy signal the day before:
- Last night, the Industrial Production Index (found here: St. Louis Federal Reserve Bank) declined for the first time since the Dow Theory Bear Market signal on August 2, 2011. This may be the nail in the coffin in the bear market rally (Our call on a market bottom and bear market rally found here: August 9, 2011).
- Yesterday, April 17, 2012, gold fell while gold stocks rose. Either gold has to increase or gold stocks need to fall. Today gold is sliding confirming that the run in gold stocks must be false. We make specific reference to false indications of when gold falls and gold stocks rise (found here: November 2, 2011)
This is the nature of speculation. We'll re-enter our speculative position at another time.