4 Oct 2011

 Despite the hard work of the rumor mill and the bulls panic buying hoping to find the bottom, McClellan still finished a -100 points, a sizeable decline.

 New lows at a new high, by far...

 Hold short increased today.

 Hold long increased today.  I was home around 1:00 today and this was almost as high as that most recent spike.  Therefore, I started to close all of my shorts as the Nasdaq declined from +30 to -30.  I was a bit pissed, but then was glad when I saw how it actually closed.  I just figured this was getting extreme and a short term bounce would come.  I am not buying yet.

Hold short decreased slightly today.

 

The white trendline is the more steep trendline that started relatively recently.  The blue trend line goes back to the bottom in 2008.  I think it would be reasonable that gold goes to there (it seems to be struggling on the white line), but I am quite certain this bull market is not over.

"I can't remember the exact quote but when I used to trade and Mr. Volcker was Fed chairman, he said something like 'gold is my enemy, I'm always watching what gold is doing', we need to think why he made a statement like that. If you're a central banker or one of the congressmen or senators, watch what gold is doing because this is a no-confidence vote in fiscal and dollar policy."
Rick Santelli, CNBC