About Me

Retired chief investment officer and former NYSE firm partner with 40 years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Thursday, May 17, 2012

Gold Price Quickie

Long time readers of this blog might recall that back in Oct. 2010, I mentioned that I would begin
shorting gold periodically via buying shares of DZZ, a double short ETN. I recommended that most
folks avoid this kind of trade and I have done trades using only a small amount of capital. It was my
way to have a profitable joke on the unrelenting bull chatter of the bugz. I closed out a DZZ long
on Mon. 5/14 for a tidy profit and was interested to see that although gold weakened yesterday, it
started catching bids at $1530. I leave the field to the bulls on the premise that QE buzz is likely
set to rise. Since autumn, 2010, I have netted about 75% net of fees on the trades.( Since only dopes
broadcast short trades, expect no comment from me until after the fact, especially now that the
levered ETNs are available). DZZ chart

In the meantime, gold has moved above that important $1560 pivot. So, let's see what they do with
it.

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