which leg do you think will get crushed? Personally, I'd venture that the long gold trade is not where it's at, but I am kinda agreeing that equities might be a sell here.
My IRA is 40% allocated to a SPX bear diagonal. No deltas to speak of at the moment but I'll accumulate (20K) deltas by the end of June (say SPX @ 2850). I plan on committing most of my taxable account to the same, but I won't receive a credit as with the IRA fill. I will be wildly bearish on any closing print above 2905.
So your intuition is that we shall see a melt-up before we get on with a melt-down? In some ways, that's sensible given how underinvested the institutionals are at these levels
Yes. I am only looking for 100 upside before I'd increase size, but (politically-driven) we could trade to 3020 this year. I'm not ready to increase size. I have a lot of 50-wide long bear diagonals in my IRA at a credit (520 contracts). My only "long term" trade prior to this was my Jan/Mar 2019 2900/3000 diagonal from early October 2018.
Retail has pulled out lot of money since last year. If the Instituionals also under-invested then what was the reason for the melt-up since beginning of the year. Recent ICI flows.
I was just reporting the news. Going long gold mining is not the same as investing in Gold. All your other option is fine, if you want to be long in gold. Gold Etf has tax issues if you are US investor, Futures or Gold options would be my bet, if i want to be in long Gold.
If you play on my team. Aka the pro team. We never carry the dumb money to heaven. Just look how long retail is on gold.
I think Gold will be a great long term trade, but not yet. I think equities run up for another year or two before Gold takes off