November 18, 2009

In response to the comment on why we are short gold, the point of this blog is to be ahead of the crowd. Long gold is a crowded trade with lots of late comers to the paty. Our proprietary fund flow indicators are once again negative indicating that the smart money is selling into the strength. With the exception of the technical screen, all other screens of the ZYX Change Method are negative.

In our earlier post, we cautioned about hilding the short position overnight due to high gap risk. Lately prices in the elecrtonic trading after the floor trading closes have had a very high correlation to the next day g higher gap openings.… Please click here or the title below to read more.

Russia’s Kudrin says state repository to sell 30 tonnes of gold to C. Bank before year-end at market price. From Reuters.

Short again on $GCZ9 from $1153 based on ZYX Change Method. Please see prior posts for details.

Risk control is a very important aspect of the ZYX Change Method. Stop at $1156 and we will not carry it overnight due to high gap risk.