Despite signs of panic in the equity market, gold is NOT surging today. We mentioned in this weekend's summary the reasons for the short (crowded trade, everyone loves gold, double top with March 2008 highs) so I won't rehash it in detail; this will be a short term trade trying to get about 15% if I can. I will use GLD ETF as my trigger.
We're at $98 on GLD, I see it pulling back to lower $90s ($92?) - when we get there I'll exit out of Powershares Gold Double Short (DZZ)
I'm starting with a 1.4% stake around $18.90... if we get a panic open tomorrow and gold spikes I'll add more. First time I have touched this instrument so hence the relatively small position size.
I love crowded trades because I know the guy on the other side of this transaction was me about 9 years ago ;)
Long Powershares Gold Double Short in fund and personal account
Monday, February 23, 2009
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows