Its a massacre

[bub]

Gold Falls on Concern Chinese Demand for Commodities May Ease
http://www.bloomberg.com:80/apps/news?pid=20601012&sid=alqHJvT31Akw&refer=commodities

[qcomer]

GLD/SLV fell by 3-5% today despite dollar weakening. It shows that with all the ETFs trading gold, there is speculative element in gold as well. With traders and hedge funds looking for all possible ways to make money in all asset classes, gold is not immune to speculators pushing its price artificially high or low.

[HereWeGo]

Pretty brutal day for gold, no doubt about it. If jg is really big into charts and graphs, he needs to stay away from the 30 day and 60 day charts for gold. Yikes.

[Anonymous]

Oh, qc, NOW you tell me that there’s been a speculative component to gold’s price increase over the last year!

Yep, I had no idea that gold would come down with the broader markets. My looks at history did not show that. I had no idea that folks/hedge funds would borrow to get into gold, then have to unwind when the yen moved up and markets moved down. Maybe I need to research the correlation between NYSE margin loans and gold?

Portfolio is down 8.5% from peak on Monday. I told the family that we’re on peanut butter and jelly sandwiches for dinner until our ship returns to port.

No mas! I put my orders in this afternoon to switch 100% into money market funds. And, as soon as the paperwork clears, I think I’ll be going into an S&P 500 inverse fund. Orders won’t be executed until Monday, so I’m hoping that the market has a good day on Monday.

Then, after the upcoming 10-15% drop in the S&P, we’ll be back 100% into gold.

What a week!

Humbled and broke,
jg

[HereWeGo]

Yeah, I’m in a totally different asset class, and I might be walking cowboy style for a while.

Look out for the Fed, folks. Bernanke has a hanger full of helicopters, and only the merest drops of fuel have yet been spent.

[hipmatt]

Well, I think gold will drop little here and there, bat as some investors wise up, they will be pulling their money from stocks/funds, and they will get on the gold bandwagon too. It only makes sense. The dollar is falling, and other govs. are buying up gold. I still see gold going much higher. If gold really is a debt security, then think of how much we should own it.

[Chris Scoreboard Johnston]

Chris Johnston

HereWeGo – absolutely without question you are correct. This is why I follow the commercials so closely, they represent these large funds, etc.. Us small fries do not determine market direction.

The Gold debate speaks for itself for those debating what I have said, an over $50 per ounce drop with the stock drop. There is no inter-market relationship here from my studies.

[qcomer]

And we got the technical bounce today that we were waiting for. Not surprisingly, every thing moved upward including stocks, commodities, oil, gold, etc but yen moved downward. Dead cat bounce or end of correction? We will see tomorrow.

[Anonymous]

What a silly response the market gave today: durable goods orders down by a surprisingly large amount; wages growing at just under 7%; productivity growing by less than 2%; the yen up; and the market goes up!

Good thing that I got out of gold mining stocks yesterday and into a double inverse S&P 500 fund today, so that I could miss out on the 4% rise in gold mining stocks and take a 3% hit on my double inverse fund.

Peanut butter and jelly sandwiches for dinner will continue for the remainder of March.

[sdrealtor]

It sounds like you are on pace to market time yourself into the poorhouse.

[Anonymous]

Hey, that’s not funny, sdr!

Big divergence of opinion on the ‘Prognostication Station,’ especially on the stock market. We’ll see who’s right at year end.

Two great years in gold mining stocks have left me well ahead in the game; one bad week took some, but only some.

[Chris Scoreboard Johnston]

Chris Johnston

jg – I told you to be careful shorting the market down here, it was extremely oversold. This is the type of bounce that although tough to time because it is counter-trend, is inevitable. Thanks for being honest. I get caught on the wrong side at times of things like this to, eventhough it is my business not to. I am waiting for a little more up, to get short on a short term basis.

[sdappraiser]

“Good thing that I got out of gold mining stocks yesterday and into a double inverse S&P 500 fund today”

Somebodies wife is going to kill them.

[Anonymous]

Ha, ha!

Misplaced or not, my wife has complete confidence in me. I’m champing at the bit to move the remaining 80% of my portfolio into the double inverse fund; should happpen tomorrow (it’s been a painful three week transfer process).

We’ve all made predictions, and the measurement date is Dec. 31. I can deal with the interim ups and downs.

Heck, it’s kind of fun to see my daughter’s jaw drop when I tell her how much we lost in one week in early March. All part of the process of giving kids the education that they need to become strong, self-sufficient adults.

[cabinboy]

jg…

I fear you may need a head examination. Going into a double inverse fund with a significant portion of your portfolio defies any explantion whatsoever. Anyone who does this is by definition working under the assumption that they can correctly time the market. You are operating as a speculator in a market that is much more difficult to judge than the housing market. You are risking up to 20% of your principal on a monthly basis, going AGAINST a significant long term trend that has existed for decades and shows no sign of going away. That is not a winning bet my friend. Heck, even the speculators who bought homes at the peak in ’04-’05 only had 0-5% of their principle on the line. You are proposing to operate in a capacity that makes these people look like geniuses.

Folks, making 10-15% a year in the markets is not hard. Obtaing a standard deviation unit above this takes special skill and a whole lot of work. Deviating below this is also challenging, but done routinely by folks who for whatever reason just can’t seem to understand how the world works. Pity. Pity.

[Author]

Posts