Update: Long Equity/Short Gold.. Doubts creep in..

Just a few days back I had recommended a long equity/short gold strategy .. I'd like to revisit that stance.. We've made between 1% to 3% on that trade.. gold was at 1200-1220 levels .. and the SP500 was slightly lower..

I'd take the money off the table at this point.. The new trade's a long bull spread with Long 1x 2% OTM calls and Short 1.5X 5% OTM calls.. A naked futures position is not warranted at this point given the global market situation.

My expectation is that we'll move lower from here.. but the risk/reward is clearly in favor of a long equity position at this point. I'd still like to bet with the Central Banks (see previous article), just that my conviction levels are lower now.

Trade safe !

ps.. stay out of currencies.. they're a rigged game now.. and the house may not have complete control !