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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Earlie who wrote (67886)	11/5/2009 9:11:29 PM
From: Earlie	Read Replies (2) \| Respond to of 78403

Earlie from Earlie: My favorite, GSL, has experienced a very significant rise in volumes over the past few weeks and has also seen its share price rise delightfully. Normally, I would just sit back and let the horse run, but market conditions have me frightened so Taking Some Profits R US. The worry list includes the following: - Huge short positions against the dollar. Last time around, the shorts (especially the hundreds of hedge funds that were "short the buck and long gold" were blasted into oblivion. This time, many of them are "short the buck and long oil" (so I am glad I have no exposure to black gold). I have little doubt that these huge short positions are going to be attacked which means there could be plenty of blood and gore. Yes I think the US buck is toilet paper in the long term, but short squeezes can be nasty. - For decades, the large bullion banks have milked the gold and silver markets through the simple expediency of taking the short side of any run-up, then kicking the longs down the stairs (through concentrated additional short selling). With no position limits, they have reigned supreme and made good bread. But things have changed. It is now recognized that calling for "actual physical delivery" could traumatize the shorts. The upcoming December contract seems to be shaping up as a battle field in this respect,... a battlefield that might be littered with corpses on one side or the other. While I would love to see the bullion banks take it in the teeth, I prefer to make my bets when I have a better understanding. Being an interested spectator makes sense to me at this juncture. - Gold has experienced a lovely run. Perhaps a bit overbought? - Most investors are now breathing a sigh of relief,.... "Wow, ... we made it through October". Most expect a relaxed run through at least Christmas, especially with "the recession now officially over". (tell that insane lie to the millions who are not employed... I am sure they will be pleased to hear this). Too many folk on one side of this trade for my liking. I love gold stocks but will back off this sector for a bit and take on a small mitt full of puts for the next few weeks,.... minimally through the Thanksgiving holiday..... so we can see what impact reduced retail Christmas season buying will have on market perceptions. Best, Earlie