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I started a 1/2 position in $DZZ, which is the ultrashort Gold play.
All trades are timestamped in The PPT.
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TOTAL PORTFOLIO:
EQUITIES/ETF’s: 68%
- LONG: 56% ($ATPG $CRZO $CSTR $GNK $GS $HMIN $TIE)
- SHORT: 12% ( long $DZZ, long $QID)
CASH: 32%
Can you post a chart like you usually do? TIA
I don’t find it constructive to post ultra ETF charts, sorry.
Better set a darn tight stop….
It’s only a 1/2 starter, my friend. Isn’t that what you preach? Patience and fading the prevailing trend by spacing out buys?
did u use a chart to realize the opportunity? or is this a play on dollar up-market down hedge?
I will post. GLD is extended and UUP is bottoming.
Thanks. Jake has been looking for a spike in the dollar, as well, so just trying to get inside the minds of you guys.
Your trade in {GS, MS, DZZ} clearly are against what’s going to happen due to the {fed, shadow banks, illuminati, VIX, dark brown slacks}. I will be watching your losses in the comfort of my Robert Prechter branded snuggie.
Shorted ABX against a long in PAL (technical breakout) after the open today.
You’re on a roll Chess…looking forward to Monday to see if the streak continues. Thanks for all your hard work!
Nice pairs trade.
Thanks Donovan for being a loyal reader and commenter.
Chess, do you manage investment for others?
Nope. I am a one man gang (I manage my mother and sister’s money though).
that’s too bad. i really don’t have time and energy to track and follow tradings myself and would like to hand over to a trustworthy pro. i have Dennes Lupastean on kaching.com invest for my energy portfolio but needs to cover broader ground in addition. thank you though for great blog.
Thanks, hubbs.
Hopefully someday I will manage money for others. It is a long term goal of mine.
If you think, UUP is setting up for short term bottom, this makes sense…but it doesn’t dovetail with your view that stocks are headed higher.
We shall see. If stocks can hold up while the Dollar rallies and Gold falls, then you will see just how strong the market really is. In 2004, we saw many entangled asset classes detach. the same could happen now.
Of course, what worries me is that this is a rally based on “hoped for” liquidity. A perceived removal of that hope would see the dollar rally and gold fall. I can’t imagine stocks doing well in that environment.
Hey Josh… how can the dollar sustain a rally when the fed is printing cash? Why shouldn’t Gold continue higher when the fed is printing cash?
you know you’re good when people question ONE possibly baseless trade, when countless others have been shorting and adding since 1100, the crown jewel of random trading.
Steve is right though Chess, the men in charge, they will have your legs, good sir, for there is no way the dollar will rise, ever, ever again.
LT gold trend is still intact. (I know this is notr your trade, im on a tangent now). Rates are zero. Cash for saving earns no yield, so that removes the disincentize to own gold.
that’s basically it. Can’t raise rates, and the only reason to NOT use gold as a store of value is rates.
It’s ALWAYS interesting around here.
Ain’t that the truth, Yogi!
Good luck, maybe it is pullback time. I tightened up my SLV stop just in case due to catching the last big move up and I am not giving any back!
This line had me rolling on a Friday afternoon:
“We shall see. If stocks can hold up while the Dollar rallies and Gold falls, then you will see just how strong the market really is”
I thought the Fly took over for a minute! Too much, that was funny.
Have a great weekend and if your internet works, here is the end of Searching for Bobby Fisher:
http://www.youtube.com/watch?v=ujQdE_2tBqk&p=68B992BD597E4BC1&playnext=1&index=26
Good luck, I hope this trade works out for you
We shall see, my man. Thanks.
In the short term, I think you might be right, Chess. Next week I’ll be watching the 1335 area and above, for signs of weakness and a possible fast money put trade… but long term it’s hard to see why Gold should trend lower.
Price is constricting / coiling… looks like an explosive move is coming… I just wonder if it will be to 1400 instead of lower. But looking at the trajectory of this leg up in Gold, I gotta think they are gonna crack that bastard. Even though I see quite a few technical reasons to start eyeing Gold for a pullback right here (rising wedge from 2008?), I’m trying to figure out why you picked this particular spot… are you fading that upper trend line from 2008?
GLD Monthly Chart – http://twitpic.com/2tvt8q/full
USDX (still looks like it has a bit more room lower, no?)
Monthly Chart – http://twitpic.com/2tvv9d/full
By “coiling” I mean in the context of the upper & lower trend lines from 2008 – 2010. Gold is at the apex of that pattern.
It is a short term hedge, you are correct. I just did a video about it.