We have seen Gold rise for 2 days in a row now. It now stands at 1667. I am looking to go short all the way up to 1720. I am hoping for a correction back to 1550, 1450 and possible 1350. As I mentioned the other day. November puts on GLD at the 150 strike are advisable. Gives us over a month to capitalize on the seasonal weakness of Gold in October November.
I am also looking at strategies for investing in the dollar index. The market seems to be coming to the conclusion that the US is a better investment than Europe. We may see the dollar rally quite a bit yet.
The dollar strength is bringing Crude down with Gold which are both entering seasonal weakness. We are looking to buy crude in or around it's typical December low period.
Natural Gas on the other hand is in a seasonally strong time and I am happy to hold the position.
I think it is wise to hold off on adding to Gold & Silver positions for now while the dollar is rising.
It is good we sold our Jan 2012 calls and bought 2013. It is unlikely that the Gold & Silver decline will last long but it could be a few months. A lot of the hedge funds now are getting into the dollar and so funds will move out of other investments including Gold.
Best Regards,
Robert
Robert
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