A simple warning for all those gold bulls! Have a look at the...

A simple warning for all those gold bulls! Have a look at the COT for gold and silver for today and then have a look at what occurred last time the commercial shorts were at these levels back in February 09. Carnage in both metals resulting in a 12% drop in gold and 18% drop in silver over the following 3 weeks. Another indicator that things are not all that rosy in gold bull world is the lethargic action in the GDX and HUI both of which have topped in their current ranges, the fact that gold and silver are fighting in areas of heavy resistance and the fact that the volatility in the USD is increasing meaning maybe a bottom for this move for the USD is close at hand.

I suppose the gold/silver bulls could always cling to the hope that this time will be different which is the normal catch cry for the last 8 years. Especially if you cling to everything printed by GATA and the gurus on Gold-Eagle. I should know because I did the same for 6 of the last 8 years. You ride it up then you ride it down! How much smarter and profitable would it have been to take 50% profits at highs in the COT and buy back in after a 10 plus percent retracement? Gold isn't going over $1000 and holding that target in any sustainable way until you see the HUI break above its 520 point top in March 08. Somehow a 180 point or 36% differential betwwen the current HUI price and its all time high does not cut it for me that we are about to witness the big move in the PM's.

Buyers beware!