Loading ...The VIX is now moving up into overbought territory so if you bought the VIX last week when I issued the “Shorts for the Month” email, the VIX November $15 calls bought in the $2.65 -$3.00 range are now $4.80 so I am taking 50% off the table such that the remaining 50% is on the books at “under a buck”. My reasoning is simple: if they crash the market, I make out like a bandit on the remaining 50%; if the “invisible hand” comes riding in on a white stallion and stick-saves Wall Street, I walk away with a decent score. And you just can’t rule out interventions with the U.S. midterms a few weeks (and margin calls) away.
The talking heads on CNBC are firing up their “tranquility faces” with soothers like “healthy correction” and “buying opportunity” and “cash on the sidelines” which makes me want to gag because they were all over the gold market when IT got down to oversold status on October 10th; they were trashing it like a common farm animal at EXACTLY the point where their beloved sheep (“viewers”) should have been BUYING it. However, we in the GATA camp are used to that sort of Malthusian behaviour, but unlike Malthus, who opined that human population was growing exponentially while food production was growing arithmetically, Wall Street analysts look at the incredible physical offtake in the gold market and dismiss it because “there is no inflation” not recognizing that if gold demand is growing exponentially and supply is growing arithmetically, the price mechanism should be responding BULLISHLY, unless off course some Ponzi-fication was being carried out on some exchange (like the COMEX) where synthetic gold could appear out of nowhere to meet that non-synthetic demand.