Golden Slumbers

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Well, the crickets are chirping here in Palo Alto, the sun set long ago, and you lunatics are still filling up the comments section on my Sunday morning post. So I'll freshen the place up a bit before I go to bed.

Far and away my largest short position is in gold. I shorted a honkin' big block of GLD above $100 last week. Glancing at @GCZ9 trading, gold is down nearly $8 right now. My fifth largest position – and it's still a big one – is the ultrabearish on gold DZZ fund. So, it should be obvious, I'm a precious metals bear.

I like being a contrarian. And about the most "contrary" thing you can do these days is to be short gold. Everybody and his brother is convinced gold is going to be at $1300 in no time (based on a complete misinterpretation of the chart pattern), and some of the real tin-foil hat types are looking for gold to be at $5,000/ounce soon. Pffft.

I even saw one prominently-featured comment on MarketWatch's home page a week ago where a guy said "Gold is now four digits. Soon it will be five. Then six. Then seven. You do the math." The only math I need to do is to find out how many milligrams of LSD that guy dropped.

As a swing trade, I'll probably take my profits when gold gets to $970 or so, but I'll just wait for a bounce and short it again.