i'm an accumulator of the metals of course i started accumulating in 1998, so that might give you an idea of where im at but i find them especially attractive here for an add i also like GSS, as a gold play. i like to buy it under 4 and sell it (scale out) over 4
I'm dubious on holding equities at all right now. I pulled up a 20 year monthly chart and we look technically f#cked. Fundamentally we are overvalued as well with regard to global PE ratios and interest rates have continued to rise. Seasonality is poor. I'll keep my metals but I'm otherwise going to full cash. Net short indexes anyone? I was short premium on my long holdings until April then let it run up hedged again mid-July but now I'm out and even considering building a net short position on spikes. Yikes.....
Still not alot of confidence the bottom is firmly in however the big zig and bigger zag followed by bigger yet zig than zag happens when traders of both varieties with enough money to move the market are at work. Very bottom-like. A bit surprising as we again have not truly broken down yet. I vote for limited upside ( lower highs) followed by another leg down next week. But remember as ranges have expanded we are gonna get ripping 40 point range days in the spoos.
How about 40 points DOWN EXACTLY on the spoos today!!!?!!! I thought we would trot out today neutral and begin selling Sunday night but traders are very nervous and got an early start. Smackarooooooooooooooooooooo....
Wish I had posted earlier. This am I realized the market sell-off was stalling and began two fisted buying. When my limit orders were not getting filled at the bottom in the morning I realized support was at hand and by the afternoon session things began moving. I had already loaded up on many items and had to leave so I came home to the nicest upswing in a long time. GE ETFC SPOOS C sold short-term calls against some to hedge against further downside. Held the metals although I was tempted to lock in some profits after a small but profitable move. I canned MU for now after the CEO and board hijinks. Still watching F.
Remember volatility begets volatility. Mandelbrot studied the clumping of 3 sigma and greater events and their implications in natural systems. He then found the same phenom in the markets. Lastly he was unable to ascertain direction but could forecast volatility. Hence today's "reversal" was forecast. The 40 point day down on Friday and then stall out on this mornings weakness was a classic set-up for a reversal day with expanded range to the upside. Good Luck.
ETFC 3 point jack in 2 days on short covering. 3/15 = 20% Everything else treading water. FOMC 2:15 pm..........