Premium Update

This dollar rally is far from over in my opinion.

 

I am still waiting for a possible correction in Gold to 1550 based on a further dollar rally. I would say it's a 50/50 chance so I do also have call options for Jan 2013. When I looked at the call premiums the other day the March 2012 ones seemed to be the best value we bought some for private clients.

 

We are holding the November Gold puts & the long term Gold & Silver calls and stocks.

Holding NG

Holding our bond shorts.

 

I expect a stock market year end rally at some stage. It is traditional and considering the recent sell off in the markets I expect that we will likely end up even for the year on the Dow. Right now it's still down for the year.

 

A little education:

 

The VIX volatility index is still too high at 33.32. Once it levels down a bit we will enter the market again. Traders tend to stay out once the VIX rises too significantly generally over 30 or 40. It crossed the 30 level back on August 4th and hasn't dropped below it since.

 

http://sg.finance.yahoo.com/echarts?s=%5EVIX#symbol=^vix;range=3m;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=;

 

I will be in touch with some more investment ideas when the opportunities present.

 

Best Regards,

Robert