Wednesday, August 24, 2011

Is That a Popping Sound I Hear?

Gold took about a 5 % hit today.

Due to exceptionally brilliant, insightful, analytical skills (or maybe just dumb luck), CCI took off the gold trade a few days  ago.  Mostly because of a concern that the big money could leave quickly.

Piling on to this thought, CCI felt the momentum was clearly down on gold today,  so decided to day trade the double short gold etf (GLL).  Started trading a little late in the day today, and hence purposely had very tight stop-loss limits on the trade.  That led to getting stopped out of the trade with only a very modest  .6% gain.... in an hour.  Wonder what that would be on an annualized basis?   A little more seriously, that is more than double the yield on a 2 year treasury.

While only a modest gain, we will still call this a victory.
That pushes the YTD record on double short hedging  to 10-0-4. 

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