Friday, July 23, 2010

Gold in a 3-D World

Okay time for a look at Gold. Below is a weekly view of gold via the GLD

Next up we have a weekly view of the Market Vectors gold miners ticker GDX.

As I have said countless times in the past, the stocks should lead the bullion due to leverage to the underlying commodity. Using this the GDX has failed to confirm the new highs in gold. Many will point to the globe "being off it's debt rocker" as the reason for this 'anomaly.

I continue to remember what gold did in 2008, sell off hard, and continue to worry that in a global margin call, it becomes the asset 'du jour' for sale, simply because it can be sold. Never a no bid flash crash here.

Also to be noted is that I, in case you were wondering, completely realize that ....
gold is a safe haven
gold is no ones obligation
gold is money
gold is security
gold has stood the test of time

But I also completely realize that in a 3-D world, that is one that is deflating, de-leveraging and in depression gold with always have a bid and no matter how sturdy the asset, in the 3-D environment, they all go down.

Based on this I am punting gold short. I shall do so by getting long 1 unit long of the ultra gold ticker GLL here at $41.15 with a stop at $38.84

Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $10.52
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @ $93.48
Long 1 unit Ultrashort Gold ticker GLL @ $41.25 stop @ $38.84
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $280.06

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