Sunday, October 05, 2008

Sunday Night Observations

It's Sunday night and I've just gone through my charts.  My bearish stance of stocks remains in tact, I see no reason not to expect further downside volatility this coming week.  In fact the Globex Futures Market is showing the S&P down 20 points, indicating a very weak opening on Monday.

Gold in tonight's spot market  is down about $4.00.  That doesn't sound like much, until you take into consideration the S&P's being so sharply off tonight.  The case for gold has a lot to do with the collapse of global financial markets.  But if it is indeed a deflationary depression that is asserting itself, gold is destined to decrease in value like every other asset class.  What are the signs to look for?  Gold not appreciating in line with global stocks depreciating, as in tonight's numbers.  

A

7 comments:

Anonymous said...

What are you planning to do? Wait until DOW hits 10000? I think there will be a big spike up, then we will resume to 8700. Party is over.

Dr. B

Mike said...

SDS...

-Mike

met61 said...

Allan,if McCain gets elected we should see a rally,but that is getting more unlikely.
Are you long any equities at this point?
Thanks,Ron Rascati

Allan said...

Ron, I am long QQQQ puts, DGP (gold etf) and NNVC.

Mike said...

>Monday....Great day for DUG.

-Mike

Anonymous said...

NNVCE.OB is getting killed. I guess we have to play this for a longer term....

-am

Allan said...

am, yes NNVC is falling along with global equities and is one stock that I am adding to at these levels, a gift as fleeting as time itself. Hopefully shorts recommended here are more then making up for NNVC's decline.