I'm soooo tired of this market volatitlity. A 20% gain for gold in a week?
Is this all program trading? Pretty much EVERY developing trend in this market has had the same behavior. Some new development occurs, and within an instant, momentum develops so fast that assets go from under to overvalued in the space of a nanosecond.
Not saying gold is overvalued, but I have a big no no about buying something that went up 20% in a week. The 2x gold ETF (DGP) now showing a 50% gain in 6 days. Any short term traders banking on gold now are causing a risk of a crash back down to in another nanosecond.
It's a bit sad really. You do some analysis and you hear about how some asset class will go up 50% over the next few years for a number of fundamental reasons, and then one day you realize that 50% gain happened in a week based on monentum alone.
Still had my 10% position in gold assets, fortunately (with some leverage). I nibbled some (like 0.3%), but buying on such a huge run-up is not desirable.
Oh and of course now oil is the most loved asset class in the world.
Currently 60% cash, rest of it gold, silver, commodities... and some SKF that I got assigned last friday when my SKF puts when deep OTM to ITM in the space of an hour, courtesy of the SEC's "special".
