I've learned trading even if you're right about something, it's best to wait until you see the writing on the wall to precisely time the initiation of a trade. Gold's weak performance this year and Sunday night flash-crash were exactly what I
Recent Weakness In Precious Metals Prices Signals Beginning Of A Major Short Opportunity
Summary
- Gold prices are down over 10% YTD and flash crashed over $60/oz. on Asian market open Sunday night.
- Gold will continue to trade as a "risk-on" asset and will not provide a hedge against a financial market downturn as the Fed has no further policy accommodation space.
- Gold prices are inversely driven by the expected real UST yield as well as a currency component where a stronger USD is gold price negative.
- High US-centric inflation is not good for gold prices either as it fuels rising UST yields relative to global counterparts and a stronger USD.
- Real (inflation-expectation-adjusted) UST yields are likely to rise due to larger than normal US government supply issuance coinciding with a Federal Reserve taper (demand pullback).
I have approximately 13 years of experience trading and researching, specifically relating to central banking and credit cycles. I have developed a keen ability to synthesize and understand complex macroeconomic information very effectively and quickly. I have an in-depth understanding of international capital flows, foreign exchange rates, and global bond, equity and commodity markets. I have extensive experience tracking economic data and developing macro-economic investment theses. I specialize in currencies, monetary policy, real (inflation-expectation-adjusted) interest rates and bond yield differentials. I avidly read and process daily economic news, analysis and market data. I can contribute to relevant economic thinking and discussion as well as generating and assessing investment ideas using the knowledge I’ve developed through first-hand experience trading in competitive financial markets.Disclaimer: I am not a registered financial advisor.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of GLL, ZSL, JDST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Short: RGLD through put options
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