We Told You To Get Short That Gold! by AL MARTIN (INSIDER INTELLIGENCE.COM
(7-20-14) We had warned in the Aug. Gold contract to watch the 1340 level. Indeed we were not able to get above 1340 for a test of that 1342 area. We immediately began to short the gold at 1338.30 and rode down our short positions to our cover orders at 1309.30 in Friday’s trade. Fear Bid – coming out of the market in end of week trade. Gold always the key indicator of the fear bid and we believe the Gold will continue to flag without increased tensions in the Middle East and Ukraine.
We continue to trade the Sep. Long Bond contract from the long side. We had warned last week that that 138 resistance would be taken out and that there would be a renewed test of the 138.26 area. Indeed we saw that in late week trade. We were long the contract and sold at 138.26, got short Friday as the fear bid started to come out of the Gold, generating a sell signal in the Bonds. We have now covered our shorts at 138.02 in late Friday trade and would again continue to trade the Bonds from the long side now on dips back to 137.