I covered my shorts today. I think this pullback rally whenever it is over will give a Opportunity to reestablish shorts. I think we should start shorting as soon as tape tells us that the strength of the Rally is waning. enjoy, Rajiv
Ok, the 750 target was half joking . http://apnews.excite.com/article/200...D8I8M4F00.html What I see is a probable improvement between US-Iran relations. 1)Neither side would want to seem like they fell into al-Qaida's plans, so they'll be more willing to negotiate. 2)It is unlikely that al-Qaida can sway Iranian policy, so it might be eyewash. Perhaps it might be implanted by the coalition to shift blame to al-Qaida for the US hawkish stance since they don't want war. It may also be implanted by Iranian agents since Iranian prez knows he can't afford war and wants out. Either way, this leads a possible improvement in US-Iranian relations, which will be bad for oil and gold in the intermediate term. Note that this does not mean I will sell gold, it means that this may create pressure for gold in the intermiediate term. So $600 is a more likely target.
a short sale adds to open interest as is a contraction of open interest during a rally due to short covering
could this have been one reason for the late day rally ? I read that the nymex reduced margins by approx 15 % for gold and silver futures ? the bulls need to clear the late week highs and test $600 next week to attract more buyers
You forgot my last post . Where I sold at 567. It was more of a dramatic effect, I'm a trader, I DON'T KNOW what will happen next. I just know that I have an edge over the long run. I will avoid oil and gold as I expect the war premium over gold and oil prices to disappear over the next few weeks as Iran cools down...