big holder exiting, page-15

I didn't anticipate the speed of the fall. But the under performance of the HUI, indicated the smart money was anticipating gold was about to enter a bear market. The other key indicator was golds inability to rally, with the Korean difficulties. This situation was very similar to 2006 when Israel invaded Lebanon post the gold top at $730, on the invasion gold spiked to $680-690 then backed off over 2-3 hours. At the time this was a clear signal to get out of gold. At present I have covered longs from $1380 and have gone short mid $1470s reasonable risk reward, but spike back to $1525 wouldn't suprprise. Most of the time in the gold market, need to put together technicals, performance of US gold stock indices relative to gold, in conjunction with how gold relates to major news stories. This lets you know whether the big players are accumulating or distributing. I suspect they are distributing at present, and playing for a down swing.