short covering happening today, page-7

Fair enough GM, Im just going to have to be on the other side of that trade.

when all the markets are at super highs, stocks left right and centre are hitting new 52 week highs, personally I think that is time to be cashing out.

The buy on the dips has been great for last few years but think times will change. Growth in USA was well over 50 pc down from general consensus of 4PC , even after they have pumped 600Bln in QE and done bailouts, economics on the ground are still poor. Market earnings in usa are good for some but mainly FX dervied.

china is clearly slowing according to the data and they are constantly increasing banks margin requirments to ensure their banks which are stretched have enough capital..

australia is slowing and banks have rising deliquencies

EU has finally announced a massive 76BLn in bailout of Portigual and looks like they are going in for a restructure of Greece, therefore feeling the USD will appreicate, commodities will come off further after mad run and NCM will get hit along with market.

AS for QE3, I accept your view but suggest its more speculation and helping to hold Gold in its current position, but reality is they have said NO MORE after 30/6/2011 and until that changes and they make a statement, I wont fight the fed with speculation......

Aus reserve bank has also talked up coming interest rate rises to manage inflation expectations, this has again pull down POG AUD gold. This will also stop any new specuation in property market near term as people become cautious.

Retail numbers are also poor but as I have retail interest absolutley not suprising so GDP will be lower than forecast.

Seems the forecasts are out the window in record time,,,,,three weeks ago it was 41 Bln in debt, now Swan says 54Bln............and his budget supposes the moving through of Mining tax which hasnt even hit the lower house.
Increabile to realise we have just had a mining and property boom and the goernement is in debt, needs to raise taxes to balance its books and its asset base has been sold off at both the state and federal level,,but thats an entire new thread

Talk of Carbon tax isnt a great thing for NCM or the market either.

I accept that many see Gold as money, but as such its related to the FX market and the USD is now fully reversing, another reason Gold will fall.

People buying Gold as an inflation hedge are misguided, constantly promoted by Rodgers and others as a reason to buy, I take the other side of the coin and think if its such a good inflation hedge why does it have to increase in value 800 plus dollars to effectivley reach the same purchasing power as 31 years ago (1980)...again another thread...gold has clearly not worked as an inflation hedge for the buyers in 1980.....

I have no sympathy for the Silver market whatsover, i accept the risks in both the Gold market and silver markets,,everyone is fueled by leverage and it was the people with eneormous leverage and basically no skin in the game pumping the markets, margins are required as the counter parties want to know they can be paid, clearly with the increases in margins, speculators had to sell as they could not support thier own bets....Speculators are great for moving prices drastically in both directions, if it wasnt for them Silver and
Gold would have never got to these levels, in reality they were the ones left without a seat when the music stopped. Those same speculators are in the Gold market.....so there is currently a hug risk of futher falls..

Copper is getting smashed as well,

Two weeks ago everyone said market will go through 5000 and many were pre-empting the fall telling people if it falls 5 PC or 10 PC to buy buy buy on a pull back,,,,well some commodities fell 5pc 10 and more and there was no one buying, just selling and they continue to do so......the retail punter piled in via ETF's and got smashed very badly, and the expectation that the market will simply just run straight back and past current levels is absurd to me.....

Anyway sorry for the negativity but thought Id better explain some of my reasoning, call it like i see it as you do....