Gold is suppose to be the uncorrelated, hedge against just about anything; including a stock market fall. Unfortunately for anyone hedging equities via gold for the past week, that hedge has not worked. The price of gold has fallen generally in lock step with the market this week. It always seems challenging to determine what is driving the price of gold. Usually some government policy decision du jour is the rational for the change of price. However, it see right now it seems like in the short term the price is either being driven by some big players selling to raise cash (meet margin/redemptions) and/or the technicians driving the price to fill the gap on the charts.
Whatever the reason, the momentum in gold has been down and CCI just decided to try to go with the flow. Successfully traded the double short gold fund (GLL) for a 2+% gain. 12-0-5 on trading double shorts this year.
"reverse hedging".....yes..... I just made up that oxymoron. Hmmm.. perhaps I should trademark it before someone on wall street decides to create an etf that does it.....lol