Felix Zulauf was interviewed by Barrons and he appears to be distrustful of the strong stock market rally in October.
“Investing is very difficult right now. U.S. stocks are bouncing around and probably will continue to do so into early next year. Friendly buyers have to turn sentiment optimistic again before global equity markets have another leg down. Gold is in a longer-term digestion period after a huge run-up. Give it a few months to build another base between $1,475 and $1,750 an ounce, which could be the platform for its next move up sometime next year. Investors should be defensive, look to preserve capital and prepare a list of short-sale candidates for the next leg down. And they should buy more gold on dips.
In June, Felix Zulauf recommended shorting XME, XLI, XLK and the XLF. Most of those ETF’s soon crashed 30% making it a wonderful call. At the time, Zulauf recommended that investors cover their short positions in and around November.