Contrary play of the month: Long EUR, Short Gold
19 May 2010 9: 46 am | Filed under: Short term view, positions, technicalsSentiment in each of these markets is as lopsided as it ever gets, with over 20 gold bulls for every bear and that many euro bears for every bull. Levels have remained extreme for 2-3 weeks now with no relief, so be on the lookout for violent reversals.
yahoo finance
Loading ...One Response to “Contrary play of the month: Long EUR, Short Gold”
Leave a reply
Most Viewed Posts
- Treasury-only money market funds - 10,487 views
- The next bubble: cash. - 9,452 views
- 90 day T-bill rate drops to 0.23%. What’s next, negative yields? - 8,790 views
- Inverse ETFs vs. LEAPS puts - 8,170 views
- Why bailouts will not stop the depression - 6,430 views
- About - 6,115 views
- Commodities bubble bursting - 5,768 views
- Listen to the people who predicted this: No bailouts, no New Deal, no serfdom. - 5,235 views
- On Black Thursday, 1929, the Dow closed down 2%. - 5,137 views
- Add mortgages to the debt bubble (with junk bonds, munis, sovereign debt…) - 4,796 views
Recent Posts
- Aug 24, 2010 - Ugly
- Aug 20, 2010 - Lots of jitters in the market this morning, but don’t panic
- Aug 15, 2010 - “I love gold”
- Aug 6, 2010 - Thoughts on P3 and the secular bear
- Aug 3, 2010 - VIX & Put:Call starting to make puts attractive again
- Jul 23, 2010 - Dollar sell-off about over?
- Jul 19, 2010 - CHF & EUR: 2008 dead-cat redux?
- Jun 29, 2010 - One year later, a real head and shoulders?
- Jun 25, 2010 - Relief rally coming?
- Jun 23, 2010 - Is the bounce about over?
- Jun 14, 2010 - 2011 Dividend tax increase cuts real value of S&P500 by 30%.
- Jun 13, 2010 - Shiller on double dip in housing, retail, personal saving.
- Jun 9, 2010 - Iranian central bank dumps euros for gold and dollars.
- Jun 9, 2010 - Gold shifts to negative beta vs. stocks
- Jun 9, 2010 - Beck, Woods & Maltsev on Hayek
Recent Comments:
- Loaded for bear - Madison667: Just a quick reply to let you know that we had the little girl we wanted so much on...
- Vulture funds picking at Miami condos - Carlos: I recently had a friend move to Miami, Florida and she used a site...
- Ugly - rogerjarema: I certainly hope the potential inverse H&S will not pan out. We have H&S’es...
- “I love gold” - MikeC: As Ritholtz indicated: prices are falling in the stuff we own, and rising in the...
- “I love gold” - PEJ: @Mike: yes quite funny. Making a good case against both the + and - of holding gold....
- “I love gold” - Graphite: In a climate of fear, “free money” (a bit of a misnomer,...
- “I love gold” - Mr. Nobody: “deflation is Definitely not going to play well for gold” —...
- “I love gold” - Mike: I just thought it was funny.
- “I love gold” - PEJ: Mike, dude, I don’t get it. Do love gold? or not?
Dollar Deflation is... - Thoughts on P3 and the secular bear - rogerjarema: This is the third time I post a comment on this. The previous 2...
rogerjarema
May 20th, 2010 at 10:55 pm
Huge call that paid off handsomely, at least for yesterday. Congratulations, Mike! Keep up the great work and great posts… and as always as traders keep down the ego :p (LOL, I know you never brag about your great calls)
For the short-term, do you think gold is quite oversold and due for at least quite a strong bounce? It’s down around 7-8% in less than 1 week and it’s closing to its 50 DMA support. It’s also about to meet its shoulder support of the Inverse H&S breakout. All these at around GLD 113 area. Daily RSI is also at important support at the 50 level - a level that provided a launchpad for great rebounds & rallies recently, e.g. Oct 2009 & later March 2010 bounces. Doji daily candle, too. The other day, I think it was last weekend, I also read at ZH that short interest on gold futures are at historic highs at around the all-time high breakout area. As you may guess, I’m itching to get in :p.