Gold: I Told You So - Global Market Comments from John Thomas
Global Market Comments
Macro Millionaire Featured Trades:
(GOLD: I TOLD YOU SO), (GLD), (SLV),
(BOEING STOCK IS READY FOR TAKEOFF), (BA)
(NEW ETF’S FOR THE AGRICULTURE SPACE),
(CORN), (SOYB), (CANE), (WEAT),
(OCTOBER 11 SYDNEY, AUSTRALIA STRATEGY LUNCH)
From the desk of John Thomas
The Mad Hedge Fund Trader
Tuesday, September 27, 2011
Gold: I Told You So.
You may recall that I called the absolute peak in the gold market in my seminal piece on XXX, absolutely coining it for my readers with my short plays on the way down (click here for “Macro Millionaires Score One Month Grand Slam.” As recently as last week, I was savaged by the gold bug community forecasting that gold (GLD) could touch $1,500 before resuming its assent towards my long term target of $2,300.
Last night, futures for the barbarous relic touched a low of $1,531, down a staggering $392 from its $1,923 peak just 20 days ago, a collapse of 20.3%. Silver (SLV) did a swan dive all the way down to $26.17, off an unbelievable 47.5% from its late April top. Something tells me that those who made “safe haven” buys over $1,900 aren’t feeling so warm and fuzzy these days.
Don’t ascribe any magical, predictive, oracle like powers to me in making this call. Every professional out there could see history repeating itself, especially those like me who were trading during the violence of the 1979 peak. The immediate cause for the final blow off was the substantial raising of margin requirements for gold, silver, and copper on Friday. The only surprise to me is how quickly Armageddon came. They seem to be running the movie at fast forward for everything these days.
If the market is moving up the bottom for the yellow metal so fast, I may well accelerate my buy as well. After all, in three short weeks, the potential return for a gold position has just leapt from 20% to 50%, if the $2,300 target is good.
How will I get involved? Some near month call options on the silver ETF (SLV) could be interesting here. When gold starts to move, silver does so with a turbocharger.
Join Me For Lunch in Sydney, Australia Tuesday, October 11.
Come join me for lunch at the Mad Hedge Fund Trader’s Global Strategy Update, which I will be conducting in Sydney, Australia on Tuesday, October 11, 2011. A an excellent meal will be followed by a wide ranging discussion and a minute question and answer period.
I’ll be giving you my up to date view on stocks, bonds, currencies commodities, precious metals, and real estate. I also hope to provide some insight into America’s opaque and confusing political system. And to keep you in suspense, I’ll be throwing a few surprises out there too. Tickets are available for $260.
I’ll be arriving at 11:00 and leaving late in case anyone wants to have a one on one discussion, or just sit around and chew the fat about the financial markets.
The lunch will be held at a private club in downtown that will be emailed with your purchase confirmation.
I look forward to meeting you, and thank you for supporting my research. To purchase tickets for the luncheons, please go to my online store and click the box for “luncheons.”
Quote of the Day “Back in 1996, when the average baby boomer was 49-54 years old, they had needs. When they had excess money come in, they would buy things and propel the economy. Today, they don’t have any more needs, they have wants. The primary areas are in health care, philanthropy, education, both for ourselves and our children, and hobbies. That’s why you see retail sales strong, even though incomes are falling,” said Joe Clark of the Financial Enhancement Group.