the de-hedging of the hedge play..., page-4

Hello jvegas, I think you are spot on. I agree this will have washed out a lot of positions and in general the less informed on the gold stocks.

It may not be a V bounce however so some further action in this area while the shorts come off is possible.

This shorting has been a global phenomenon. This is their window to offload the question is do they now go the other way. If they start to load up the strong rally back up to the lower Bollinger Band yesterday will be more common.

I think the shorts went partially naked (overweight short stocks) as they offloaded the gold long position and waited holding short stock positions. They will not do this for long it is dangerous. The point is gold has to consolidate up here for a while and the stocks have to be bought back.

Stocks will outperform gold at long last. Beware a final slap down is 'possible' but risky to go short now, also risky to sell the bounce in case it keeps going up.

The AUD has hit my targets and completed the ABC correction. The US 10Yr bond has completed a massive divergence sequence over past two months. Gold has also completed its 'pattern'. These factors are adding weight to an upside thesis for gold stocks at least in the short term.

I have layered some further protective mechanisms on my buy / sell system. It works to a high degree there is no such thing as a perfect system. Knowing when you are wrong as close to the level of the trade is the key. Twin moving averages layered over the top should do the trick. Also a mathematical tweak once the trade is triggered will assist.

DYOR & DYODD
Very best,
CW