RE:RE:beginning a short positionDifference of opinions is what makes the markets great. I go short or long, could care less as long as I profit from the trades. I am shorting precious metals at the present moment and you are going long, so good luck with that right now. I am narrowing my tops and have started shorts in a few of the bigger movers just recently and now SSO looks like it's topped out. When I started a short in FR.TO just a few weeks ago over $24, everyone said I was crazy. Today, just a few weeks later it is below $20. Easy, follow the charts, follow the money.
Below is a quote from my post on August 3rd on the FR.TO bullboard. It should clarify my view.
The move for precious metals moving higher is soon coming to an end. So with minimal upside, this is where I come up with the thesis the next big move will be to the downside. But, it won't be a waterfall type move, it will be slow and methodical. This will get more people buying dips until they have no more capital to buy. This whole process could take a year to a year and a half to unfold. Remember in 2008 when all the banks were close to going under, where was gold and silver? It went down too. Only a few laters did it shine(sorry for the pun). For the mother of all gold and silver bull markets, the masses have to sell most of their precious metals at the bottom. $1000 gold and $13 silver was not the bottom. I am looking at $700-$800 gold and $7-$8 silver. That will bring the gold/silver ratio to about 100. Everyone is screaming to buy gold right now, so I always have contrarian views myself, so now is the time to sell.
I had lots of doubles and triples in gold/silver stocks myself this year, but have booked profits. Like I said I will day trade precious metal stocks if there are big daily gap ups/down. I have always made the most money shorting "hot stocks". Such examples are valeant and oil stocks last year. Was shorting them near the top when people thought it was crazy. It worked out well.
So my view that the big precious metal bull run will begin when most people throw in the towel. I see the gold silver ratio being closer to 25-30. That puts gold of at least $3000/ounce and silver over $100+/ounce.
Just offering my opinion that is all. Let's see what happens with gold/silver prices in 12-18 months.