ColinchiAs anticipated, nice little bounce on covering at...

Colinchi

As anticipated, nice little bounce on covering at 10:00am NY time from 1286 to 1315. Huge NO to me thinking the US is in recovery, every indicator in the world is flashing bright red to me and I don't think that is due to too much acid in my youth...that's normally a nice warm blue light.

I could go on all day about why it will all collapse, however short version:

I believe there will be a massive crash brought about by the rise in long term treasury yields spiking...Biggest bubble ever. Markets will crash and so will Gold as margin calls go out for cash, everything crashes, no prisoners will be taken, that does not bode well for Gold miners in the short term, at some point following this there will be a once in a lifetime opportunity to buy Gold miners, my crystal ball gets a bit murky at this point,(it has this big crack in it where it got hurled against the wall last time it was wrong and Gold stalled and did not make it to $2000, my massively leveraged options that would have made me very happy at 2000 only made me smile.. a little) I see even more money being thrown in to try and prop everything up, helicopters on standby, my crystal ball sees this as being extremely pro Gold.

Now comes the BUT.... But, at the moment the talking heads are telling us everything is wonderful in the US, housing is booming (its not)profits are up (they are not either)the markets are booming ( on free money) why oh why would you want to own Gold with everything going so well, a shiny bit of bling that yields nothing, especially with such massive shorting going on?

So, to get a bounce in Gold you are going to need a black swan or something fun like a Euro country rolling over, maybe China will finally formally upgrade its gold reserves, there is a long list of pro Gold prompts.

I continue to watch, I am definitely keen on popping in and out of gold miners on a short term basis as pro Gold news pops up, I will take the cash where it presents itself. At present I have no Gold positions...but that might change at short notice.