I really think gold hit all time high "short term yesterday. " It looked like a blow off top to me. Also the dollar looked like it a blow off bottom.
I added to my short positions yesterday and i am 180% short. I have leverage in my margin accounts so i can borrow money to increase my gains(or losses)My wife's accounts are now 100% short also through triple leveraged ETF'S. This is so she can benefit at 3 times without the margin. I added the last bit of money for her yesterday into VXX. We bought 400 shares at $37.95.
Reading the international news Dubai is defaulting on their debt. This is huge and all foreign indices are selling off hard and the dollar is rallying. We are in a global market and this will effect us come Friday and Monday.
Happy Thanksgiving
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I'd be of the opinion that the Dubai "default" will surely spike gold Friday. Credit crises precipitate flight to secure assets, and regardless of what the dollar does lately, gold responds by heading up! It's not what I'd like, but a run past $2000 would be what I'd expect.
ReplyDeleteOne would, but when the true disaster happens you can't buy anything with gold. You need cash and that is what people will buy.
ReplyDeleteG'mornin! Watching the market action overseas overnight, and it looks like you have gotten loaded up at just the right time. Sometimes the markets just need any old catalyst to do what they needed to anyway. Let's see if there is continuation. PS - I need to eat crow on my gold call, I almost fell out of my chair seeing it off over $50 at one point. Gold has had a funny habit of returning to it's overnight trade lows over the past week or so, let's see if that pattern holds. Cheers!
ReplyDeleteThis gold trade is pretty crowded. Also the dollar carry trade is something unbelievable. I think Guy Adaimi summed it up last tuesday on fast money. When nothing looks it will take it down it is time to short.
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