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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: prosperous who wrote (63054)	6/8/2006 1:57:36 AM
From: XBrit	Read Replies (1) \| Respond to of 110194

<"That is AFTER all the folks who bought gold for the wrong reasons (the leveraged buy everything trade) are dumped."> Not sure where that quote came from, but I couldn't agree more with the sentiment. When gold started going dot-com parabolic, I made a promise to myself, won't get fooled again. Sold it all at 682, won't touch it until the 6 handle is gone.

To: prosperous who wrote (63054)	6/8/2006 7:58:25 AM
From: russwinter	Respond to of 110194

This is not a trade I'm going to force or necessarily predict, it's just in my mental hopper, and it's more intuitive than anything. And if it doesn't unfold, then I just won't play, I don't have to own gold. I would look for sharp capitulation liquidation in the COT speculative position, GLD holdings, and gold juniors (maybe a 15% down day in the later). You could also look for a real high oscillator reading, maybe the technical types here can chime in on that one? If that happened in conjunction with a sudden widening or blowout in credit spreads, then we'd have a great set up. Then I would also like to see gold clearly diverging from generic buy everything pig man liquidity trades like this one. finance.yahoo.com If gold imply bounced back with RUT and XBD, then it would just be more of the same.