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Playing the Ponzi
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Why “Playing the Ponzi”? I view the entire monetary and financial system as something of a Ponzi scheme. Starting with currency that is created as debt, and running straight through a global economic model that is based on infinite growth in a finite world. This won’t end well. I’d go a step... More
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Playing the Ponzi
  • Sell GLD (Not The Real Stuff), And Buy TLT? 0 comments
    May 10, 2013 11:54 AM | about stocks: GLD, TLT

    The equity market looks pretty benign today, but the bond and commodity markets have all kinds of interesting activity. The commodity markets continue to get punished. Copper is continuing its sell off from yesterday. Perhaps even more interesting is the action in GLD. After its initial plunge in March, GLD rallied fiercely back to the trendline it had broken. Today (and this week generally) it is selling off hard. Is this the "kiss goodbye" (as Chris Kimble calls it), signalling new lows to follow?

    (click to enlarge)

    On the other side of the inflation question, Treasuries are also selling off hard. What's up with that? However, instead of being rejected at a major trend line, 30 year Treasuries (TLT) have retreated to one. We will see if it holds.

    (click to enlarge)

    If TLT fails to find support here, it bodes very poorly for the price as there is a multi-year Head and Shoulders in place. To further complicate the conflicting signals out there today, JNK is also selling off after hitting resistance. Turns out all the fun is outside of equities today.

    Disclosure: I am long TLT.

    Additional disclosure: Also short GLD

    Stocks: GLD, TLT
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