SP 500 and NDX December Futures Daily Charts

The Street is pricing three big Chinese IPO's this week, and the US Treasury has just announced its intentional to try and unload the rest of its position in Citigroup. So we might see equities hold together a little longer at what appears to me at least to be a lofty level.

I was taking some of my short term gold and silver trading positions off the table today, but added a few equity shorts so net-net came into the close weighted to a light expectation of a trend change in the next five days, in the form of at least a pause or a correction.

My overall portfolio weighting remains heavily invested in bullion as it has been since 2001, with a hedged position now long the US dollar. I do not like US equities here at all, but am trying to keep an open mind since we are so close to all our targets in equities and bullion.

Gold Daily and Silver Weekly Charts

Gold and Silver virtually hit our intermediate targets today. With gold at 1425 it is close enough to the forecast of 1455 we made at around 1150 to take some profits.

Therefore we took some of the short term positions off into the close and adjusted the hedges accordingly, leaving us slightly net short equities.

We do not touch our long term positions here as we are still far from the long term targets. We will hold bullion until the currency war is abating. To put this in perspective, that puts us in about round three of a fight that could easily go the twelve round distance.

Net Asset Value of Certain Precious Metal Trusts and Funds