Tuesday after Market close May 15, 2012
TLT Bond Fund
This one graphic pretty well sums up what is happening . At top Central Fund CEF has again approached its oversold tax low at the end of December.
TLT a defensive bond fund in the large panel has nearly returned to its high level at that point. Rather amazing how we could go from the CEF low on Dec 30 to a high at the end of February and now back again in May to the same point again.
At bottom the MACD is almost approaching its December high level.
Now here is the same set up but with the Dollar instead of TLT in the main panel.
US Dollar
The Dollar does not exhibit the extreme that TLT does. Note that the MACD is only beginning to climb.
This suggests that CEF could fall further. I have been accumulating CEF but have only bought gold mining stocks in my retirement account where that is my only choice, for gold at least.
CEF closed at a discount to NAV.
This is where we were at the end of December, BUY CEF! Central Fund rarely trades at a discount to NAV. This is truly an extreme under valuation.
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