Gold, meanwhile, remains my overwhelmingly favorite asset and the chart above gives me great comfort the “mother” of all gold bull markets remains intact (Relative strength getting stronger). As you can see, we’re coming to a decisive point on the chart where a break above or below trendlines is going to mean a lot.

Short and Sweet – Once again, yours truly not only avoided what an ever-increasing number of readers have suggested I should be since early this year (short the U.S. stock market), but I also suggested temporary membership in the “Don’t Worry, Be Happy” crowd and getting long the market heading into their biggest fable of the year: the Santa Claus rally.

To all those who went long the general stock market, great! Now start exiting ASAP! No, I don’t think the “happy” people shall fail to convince the sheep Santa is real. Nor do I wish to be the Grinch (Grandich) who stole Christmas just as we started to enjoy our presents. However, today’s Central Bank actions worldwide scare the living crap out of me!!! What we’ve witnessed is a “Hail Mary” and a “throw the kitchen sink” all rolled into one. While the momentum from this action can carry right through Christmas and into New Year, I’m not going to ride it all the way unless I get pictures it’s Tim Tebow quarterbacking it.

Gold, meanwhile, remains my overwhelmingly favorite asset and the chart above gives me great comfort the “mother” of all gold bull markets remains intact (Relative strength getting stronger). As you can see, we’re coming to a decisive point on the chart where a break above or below trendlines is going to mean a lot. Right now, $1,750 is resistance and $1,675 support. Obviously, it’s my expectation that the break shall be above the downtrend line in purple. We may need to trade sideways some more and knowing liquidity shall start to dry up the further we get into December, it may be wise not to react as soon as one of the lines is violated.

I shall continue to look to buy mostly on a “stink bid” process and shall do my best to keep you informed of such actions.

Please remember: my offices shall be closed from December 10th through January 3rd and blog posting shall be limited during that period.