Yep. The metals got hammered. I was waiting for that. Classic. When they decide to turn against you the metals will rip out your heart, rape your daughter and burn your whole village down to the ground, like the Janjaweed. Don't make oversized bets. I've learned the hard way.
For those that are long the GLD (down 4%) or the SLV (down 6% +/-) today was painful indeed. I trimmed those positions into strength last week but still got pummelled. Mining shares were brutalized as well.
Then we had a fake market rally today with the DOW up triple digits at one point only to unmask itself into the close where we actually ended red to the tune of 55 pts. I covered some shorts this morning as I took down risk across the board.
Now long almost nothing. Some metals and the DBA. Sold COGN this morning when I was throwing things into the fire. Bought it Friday afternoon. Ha. Accept luck as luck and move on.
Still somewhat aggressively net short. But now I have lots of ammunition and virtually no leverage. Just feel like we could go either way here and I have very little conviction. My gut says that the market is going to crack but we could also get a violent (Santa Claus?) rally off of these lows.
On one hand I fear getting left behind on the short side if we go lower here and now. On the other, there will plenty of money to be made once (if) the market breaks. As a younger man I would have a hard time standing back from a position in fear that I would "miss it". Now I realize that there are opportunities every day, every week and the most important thing is to just "stay in the game".
My advice to you? Stay in the game. Peace.
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