I just sold out all my Gold positions. I'm a long term Bull past $2000 but I beleive we will have Dollar Strengthening until Nov 6th or so after the FED Decision. I'll be buying back in +- Nov. 6th.
Can't make it go up again until you have everyone convinced its headed lower.
No doubt there are risks on both sides and all around but vegas wouldnt want it any other way.
Regardless his USD rally thinking is similiar to what I've been thinking and doing for two weeks.
I wouldn't say a twist of fate. Just recognizing that the only way to bring Gold down, which is a necessity to make it go up of course, would be some kind of Macro Economic Event like what occurred in China the other day with a seemingly pointless Interest Rate hike.
In the Global theme of things it quite frankly is insignificant. What it was significant in however was a momentary shift in perception. The moment I had been waiting for to exit Gold before I buy in around November 6th. Arrogant, Yes. Right? Also Yes.
I beleive the thesis will hold true.
Joking aside... I have my mouse on the ready to sell like 90% of trader's... thank God that we have(as an American) Mr. Bernanke as a rational person that understand's what another "Depression" would cause to America. To be honest... I only support Mr. Obama if I know that Mr. Bernanke is head of the Fed... Mr. Bernanke is from South Carolina and understand's family working folk's.
I like the call Wes.
Instead of selling and paying a huge cap gain tax or writing calls or buying puts I hedged my 17.5k SLV position with a buy of 500 UUP Nov 23 calls. Dirt cheap at 14 cents.
Dollar rising should ding the PMs and UUP calls are a cheap way to hedge. good luck
Hahaha ya I have to agree with you, pretty arrogant thesis.
I had been waiting for some global macro event for the next leg down before we head upwards again and yesterday seemed to be the sign to me.
Using the headlines to tell the American people that their Dollar is strengthening and they have the Power again to Control China seemed like a great theory for me. What better way for the next round of devaluation of the Dollar than to convince everyone you are infact Strong.
We'll see. I'd laugh at myself to have to buy back in higher. I'd be mad.