There was total carnage all morning with hedge funds getting crushed in momentum stocks, financials, and short bond positions. The gold traders intentionally broke the 200-day moving average and triggered stop-losses across the gold pits. All looked lost. In the last hour of trading, our gold position started going up even though gold futures were still going down. It was really strange. We held on to our positions and even added short U.S. banks to our portfolio. We had to reboot our computers several times because we could not believe our leveraged gold index position started soaring!
We ended the day with our gold holdings up 10%!
Touché gold bugs, Touché;)
