Wednesday, May 18, 2011

After the Next Big Trade

First criticize, then embrace. It's becoming a disturbing trend here at Market Anthropology...

With that said, I'm really just patting myself on the back for being on the right track with Soros in March. From my March 25th piece, The Next Big Trade.

Assuming all things are relative, and the kinetic intra-market/asset class relationships still apply - you can see why George Soros believes that the gold market is the largest asset bubble of the day, and by extension the commodity complex as well. 
These charts illustrate that thought rather profoundly. It would be an excellent time for him to put his money where his theory applies and dwarf the gains he reaped for breaking the British Pound. 
Now that we know he exited the vast majority of his gold holdings (net exposure) - my question is this:

When will his short position show up and what would that do to the market zeitgeist towards gold? Say what you like about his politics - the man knows markets and the market would listen closely. 

Momentum is ephemeral at the top of a move - silver can testify to that dynamic. 


I just joined Twitter. All my trades and occasional market musings are disclosed in real-time here

(Positions in UUP & TZA)

Disclaimer: This is not investment advice. Always do your own due diligence. Erik Swarts is not a registered investment advisor. Under no circumstances should any content from this website be used or interpreted as a recommendation for any investment or trading approach to the markets. Trading and investing can be hazardous to your wealth. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor.