Today was a very good day. The relentless rage of precious metals higher finally abated, and equities managed to actually fall. I mean, c’mon, a 0.19% drop in the /NQ isn’t something to throw a party over, but still, I’ll take red over green any day of the week.
Most importantly, there is some real damage being done to the major ETFs out there:
Of my twenty-one short positions, every single one is profitable now, some of them substantially so. I also feel less wretched about selling PALL on Tuesday, because the fact is that I missed the top by one stinking day, and there’s only so much abuse I should endure based on that. I had a huge GDX short position, but for the moment I took profits on it since I’m so shellshocked by the late-day blasts in the market.
Precious metals need to do some serious, serious back-pedaling to become attractive again. This isn’t a one-day retracement. I think weeks may be needed to get gold off the front page of USA Today and Bumpkin’s Weekly. At present, I have absolutely no precious metals positions in either direction.
Thus, Thursday was very profitable for me, and I dialed back risk from 170% to about 98%. Let’s see how Friday goes for us all!
