Hello EP, Bop and weave, twist and turn, zig and zag, scream and shout, and downs goes gold, as it should, for the moment, before it rises once more, as it must, once again.
<<PAL>> ... I was watching PAL, along with TLT, HGX, gold, platinum and energies last night, before watching a "Columbo" DVD. Gold was the most exciting ;0)
I wake up from comfy slumber this AM and am immediately comforted by a gift, that one of gold dropping out of selling territory and declining into buy space.
<<All the NEM call sellers should be able to cover at a nice profit.... >>
You must have included me in that comment achamchen.com :0)
On the one hand I think last night's job spin is absurdly funny, but OTOH I am not surprised about the gold's corrective dunking, because it is time, and it is traditional ;0)
On the third hand, or the left foot, I sense danger in the current exuberance in the financial market space, and I figure nothing good will come of it, except that we will be set up to do more looting going into 2004.
Situation review:
The NEM covered calls I shorted before are now cheaper, even as the NEM puts I shorted are still far from exercise price;
The AEM and HMY straddle premium got ground down a bit more as we are closer to expiration;
The sales proceeds from paper gold disposal are now mobilized, to once again rush into paper gold, but only after a bit more of pain for the now squishy gold bugs, of which I am probably one.
The currency positions, comprised of CAD, AUD, Yen, HKD longs are doing fine against the lone USD short.
Over the next few days/weeks, we may learn the inconsequential nature of all the observable spin regarding the upturn in the economy as no more than a wish of an anticipative financial market and its speculatoriate lumps, and we should once again fret over the matters of true substance, that of deficits of fiscal and trade, declines of monetary discipline, deflation of paper assets, inflation of living cost, stagnation of job creation, convolution of leadership, impending implosion of housing, explosion of protectionism, and continuing but ever sharper divergence of observable facts and laughable spin.
Then again, we may not, for a while longer, before we do.
I am hoping for NEM at below 35, and gold below 355.
Chugs, Jay |
