I expect the liquidation in the commodity space to spill into the general market soon. We are doomed for a 10% move lower, now that taxes are done.
The sector has been screaming bloody murder for the better half of 1 year, constantly underperforming the general indices. Whoever is focused on metals/mining should be getting margin call’d out today, if not tomorrow. I didn’t think there would be another rout in gold today, but it happened.
As a result, I expect this move will exaggerate to the downside, picking up steam towards the end of the day. If you bought on Friday, refrain from averaging down here. I will wait to buy once more, then sell on a lucky bounce.
The downside to the metals is significant, considering where they’ve come from. It appears the core holders have lost faith, which has resulted in this damage.
Bottom line: Raise cash and hedge. We’re going lower.
Hoping my VIX 15 Calls will make me some money from this cluster f*ck.
nice play. It’s a VXX Spring
I was think the same about the VIX, although it probably won’t happen.
Gold is going to bounce here.
Hard trade there.
Mr. Fly would a selloff in Gold and Silver not be bullish? 10% correction.
Buy the blood, embrace the horror
We have such a huge ugly commodity bubble. I have been waiting forever for it to fnally pop..way too much of it at historical levels in storage…but that is what bubbles are made of.
The ‘Fly’ said on Twitter:
“Long time gold/silver bulls are the gimp from Pulp Fiction being put back into the box.”
Funniest sh_t I have EVER read…
Man, you must read some strange shit. Turn the page.
And the door to justify future easing just opened a tad more.
VXX not reacting very positively to all this….
I always thought that Fly’s old jibe at Jake ‘EXK to 0.00’ was good-natured banter.
If these Feb lows get taken out, I’ll be damn – this is starting to look clairvoyant…
the gold bugs and the knife catchers are gonna get taken to the woodshed, lets hope that the margin calls aren’t so bad as to take everything else into a tailspin…
Precursor to stocks getting wkacked.
No question. Strap up.
_______
Death to the useless yellow metal!
Long US dollars seems like a O.K. idea, no?
Is there appropriate small cap short ETF one should consider?
TZA
Bot $GDXJ 12.28
buy the blood
In defence of gold, I think that it is a store of value for the loooooong term. Butt, in the short term, it is very perplexing – Japan’s move on the yen should have been good news for gold but WTF?