Gold

[nickola.pazderic]

Erik Swartz noted today that $SPX and $GLD are developing and inverse relationship not seen since early August.

Despite the fact that I knew this, trade ideas and news flashes (e.g., European ministers will/won't...) have yet to gel into the perfect trader's mind; thus, I only stood by as Gold, NUGT and SLV broke out heavily to the upside on the news that some meeting was canceled-- a sure sign of discord, etc.. Any of the three trades could have served as an excellent hedge to the Robot trade.

I assume the trade wizards caught this, if only as an E-mini short.

Now, as I look again, GDX, GLD, and SLV are running from DR1 to DR2.

Again, I add: the big Indian festival Diwali is tomorrow-- I believe.
And, many traders everywhere are anticipating QE* on both continents, rendering gold as the most certain of hard assets.