Best Buy (BBY) Chart Study, Many Losing Faith In Gold

Today we offer two views, long and short-term, of BBY. 

A drop of 1/3 or more, to at least $20, is likely.  If shorting, then covering above the 7-year downtrend would be prudent to limit risk.

We last wrote about BBY here, in a post which may offer other worthwhile ideas for those interested in short selling. 


Interesting Articles:

The Real Cost of Owning Gold

From Vancouver to Ghana, people are losing faith in gold

We've insisted for a few years, counter to popular myth, that the Average Joe had already gone "all in" on gold.  Quotes from the article above:

"'We’re holding trash bags,' said Philip Mann, 53, who with his wife put about US$160,000, half their retirement savings, into gold and silver coins starting in 2009. They’re now worth at least 40% less, including sales mark-ups, he said. The drop forced him to cash out a 401(k) retirement plan..."

"Some 2,273 U.S.-based mutual funds have an exposure to gold bullion, mining or exploration, according to the Chicago research firm. Amid the frenzy, gold advocates made dramatic predictions that the precious metal would be the only way to protect wealth. The boom rippled out to as many as 60 million people around the world ..."

Note the galling hubris at the top among so-called experts, always a sign of imminent failure: "John Paulson, the New York hedge fund manager noted for making US$15-billion with a bet against the U.S. housing market in 2007, told investors in February 2012 that gold would be his next triumph. His gold fund lost 59% through July this year..."

Hedge funds lose faith in gold


Keep in mind our chart showing the progression of the psychology of gold & silver investors through the Seven Stages Of Grief, which is clearly reflected in the above articles.   It has proven accurate and predictive since we introduced it almost two years ago:

We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the positions we do, or for mentioning any positions or publicly traded companies in this blog. If we hold existing positions we divulge the fact. This blog is merely a diary of some of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.

Please presume that we, she, he, I, it, them, they, us and you are purely fictional characters and that everything written in this blog is satire intended for comedic amusement only, and not to be taken seriously in any way. Just like "real" analyst proclamations. Thank you.


To be notified when this blog is updated : Please e-mail christianguinness@hotmail.com with "Subscribe to blog" in the subject line or click here to do so automatically if your computer is configured accordingly. We have never shared our mailing list with anyone, nor will we. Please note that we only send update notifications when a trade idea is diarized or updated materially, not if a blog entry only contains general commentary.