Gold - Fade a The Short Squeeze RallyThe marketing team behind gold and silver are always telling dumb and dead money that they should "hedge" against a "collapsing US Petrodollar" during times of global instability by being long on metals.
The trade rarely works out. Gold and silver not only routinely follow the equities markets straight to Hell, but tend to get dumped during the start of new index impulse swings.
This rally while the SPX gave up its 5% rally is actually a significant anomaly.
But if the propaganda never, ever worked out, the propaganda would stop working and the marketing team would be out of a job.
And that more or less sums up a 10% monthly rally on gold that's killed short sellers who wanted to comfortably ride a trend down.
You can see on the monthly that this price action is just more ranging, more wick plays, and there's a notable unbalanced gap under $1,800.
It's really important to keep a cool head as a goldbug, especially under the condition where the establishment media is reporting that Xi Jinping and the Chinese Communist Party is long several hundred tonnes worth of gold.
The CCP is collapsing and everything that is going on in the world has to do with the various members of the CCP around the world, who are not of the Chinese race, scrambling to bury their skeletons while also trying to ensure they can take control of the country when the regime falls.
And because of that, there's no reason to believe that a CCP that is desperately selling US Treasuries (see: Santiago Capital) for USD is going to be allowed to go plussy plus greeny green on its deeply deep goldy gold position.
What hangs over the head of everyone on this planet is the Party's 24-year persecution of Falun Dafa's 100 million students and Disciples, a sin committed by former Chairman Jiang Zemin on July 20, 1999, that has even had the audacity to commit the unprecedented crime of live organ harvesting.
Keep your distance from and wash your hands from anything related to the CCP, including the western factions that have become a particle of the Party swearing Marxist vows in Shanghai.
So, here's the trade.
Doesn't matter if gold takes $2,015. It's not the right overall timing for a new rally to $2,200.
Instead, either go short, or wait for gold to trade under $1,800 again.
There's no reason to believe gold is a new bull market until longs have been ruthlessly violated. There's no reason to believe metals are going to rally as a hedge during an international war or a major equity sell off, or a major equity rally lol.
