Shorting gold with DZZ

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Subprime JD's picture
Subprime JD
Status: Platinum Member (Offline)
Joined: Feb 17 2009
Posts: 562
Shorting gold with DZZ

Its been a very good trade, went short with gold at 950 (after the Fed's announcement of treasury purchases). I figured that it was a speculative bounce but nevertheless a sign of things to come. 300 billion in treasury purchases is alot but the Swiss, Japanese, and Brits are also printing money so its reasonable that the USDX would gain.

 DZZ is a good shorting vehicle as it has good kick with 200% leverage. Also, nowhere nearly as risky as the insanely difficult futures market.

 Im thinking that gold can get wacked down to the 700's as equities improve making investors more willing to buy stocks for a bigger gain than the tradional safe havens (treasuries, gold).

 

Also, TBT shorts treasuries.

Fivemileshigh's picture
Fivemileshigh
Status: Member (Offline)
Joined: Dec 22 2008
Posts: 17
Re: Shorting gold with DZZ

Sounds like a good plan, if you have a golden parachute (pun intended).

 

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