Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

Sir Realist....

Do not underestimate the commercial shorts ("smart money") in gold - historically, they have been very right a significant turns in gold.

Gold is not like the equities market, in that it is a much smaller market and more easily manipulated. One possible basis for the current rise in commercial short positions is seemingly counterintuitive - the rise in the threat of a real problem in our financial markets induced by the money center banks. Instead of the sharp rise in the price of gold that one would expect in such a situation, the smart money could be betting on the PPT (with the aid of the gold cartel) to move the price of gold down to help JPM, C, BAC, GS and the others. Unfortunately, that is a fairly rational expectation that has its roots in recent trading, at the July 24 "bottom".

As I said, I am willing to wait a bit before dumping gold stock trading positions, but both the COT's and a number of the charts are arguing that it is the smart move right now, and I could change my mind at any time.

mlsoft