May

17

Things people love to hate have been on a tear this month. Bonds have rallied daily– and right on cue since everyone and their grandmother came out with compelling list of reasons for US Treasuries to become… worthless. The underlying currency - so heavily Xeroxed and collated - rallied even bigger, having everybody (but the Japanese) busy short-covering day and night! Will this craziness pause? Of course; nothing lasts forever. So what best trade is to get ready for?

I'm outside of "Gold Bug" camp. This camp is currently patient, looking to "accumulate physical at bargain prices". I say they better wait for a long time: like triple-digit gold and $15 silver. Gold train simply over-exerted with that careless $1577 pop, and will need to unload a lot of late passengers (read funds)… Silver is in far worse situation, because its poor-man's gold. And poor men tend to get poorer…

So the trade I want going into summer is to buy Treasuries and the US Dollar on a pullback! And to short any rally in commodities and equities. Will I get my wish? Patience is a virtue.

Who is on the other side? Those getting ready to short Bonds and Dollar. Those getting ready to buy near-term bottom in commodities and equities. Hey, it will be fun if we all make money! The only question is: who'll catch a bigger move?


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