Tuesday, August 30, 2011

Massive opportunity to get in short

There has been a very strong inverse relationship between gold and equity markets for quite long now. Looking at this gold is back to its previous levels and equities haven't gone down. This has been a very sharp movement for the equities upward but it can be big fall down from this level. The natural calamities all the globe is like adding salt to the wounds. This is not helping. Every country's finances are drained with these uncertain events all over the world.

With this uncertain chain of events the technical and fundamental reasons me to be long the gold and short the equities worldwide. These are quite volatile times and I would like to be on short side of the equities as the basic problem of debt crisis is not addressed properly by the western world. This can be a double dip!

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