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Veteran Advisor

Re: OptionEye.....April 18th

Two things happened to the Hunts...the powers that be changed the rules on them while they were attempting to corner the market, and they forgot that you can create more silver by mining the stuff. "Never go long on anything that can be grown or mined."  Learned a lifelong lesson as a child by watching a man in the local community get cleaned out when he was on the long side of that silver market, too. Going long wasn't what killed any of  them, being greedy and doing it on margin was what did them in.

 

If you are going to go long or short, don't do it with the grocery money. And if you go long, the worst that can normally happen is that the stuff goes to zero...you have a finite loss to look at. If you go short, there is no upper limit, save what you create through options. They same guy that got cleaned out had a brother that rarely  shorted any markets, always played by the adage that if you buy something and its a good deal, when it goes down, you buy more. He died a mutli millionaire, btw. The brother, that is. He went with moderation, and never bet the grocery money on anything.

 

I really have no dog in the hunt on Gold, and favor a strong dollar and some semblance of fiscal sanity. Having said all of that, if Soros would have his commodity shorts backfire on him and take a big loss, my only comment would be that it couldn't happen to a nicer guy.

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Veteran Advisor

Re: OptionEye.....April 18th

Red,

thanks for the story and wisdom that goes with it........I bet Soros has covered most shorts by now-----Gold had a similar magnitude correction in late 2008.........it will be an interesting rest of spring and summer ALL the way around.

jec, thanks for the reference!...equities might be trying to get a foothold here, at least temporarily.......should know soon if that is bigger correction starting.

c-x-1

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Veteran Advisor

Re: OptionEye.....April 18th

cx, the markets must have got the new 8-14 outlook early.   below normal prec.

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Veteran Advisor

Re: OptionEye.....April 18th

jec22,

 

i saw the 6-10 & 8-14 had less precip & the latter even has that "hole" of cool moved east..........yeah, suppose it could have played into selling a bit......but Dec was down only about half of May, so likely some other spark, too........We'll see how week closes out.

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