I do understand how it works. You short one to go long in the other. Since the Jrs are easier to short than the Srs. It is obvious who to work over. My puzzle is what now?  If the hedgies went long without stops what do they do now? It would seem they are underwater in the long department. Judging by the way the Jrs are acting lately they may be breaking even. So if the marginman comes calling for the underwater longs what do they do?

Any Thoughts? Looking for info.

Gold was a big ouch this week nearly 12% down (I included the sunday high). It still is within my channel and above the uptrend. I am not going to suppose what it may do next week. It moved way to fast and so did everything else. The USD went up a bit. still only 3 cents away from the 70 mark. Yes I do agree it was a panic to prevent the dollar from pericing the 70 after everything that was bad these last 2 weeks. The pure TAs would have said it time for a bounce, which was true. Nevertheless, the fundamentals are not there. So can it be maintained. I doubt it very much. They need more than a couple of banks beating greatly reduce estimates (reduced by >50%).

The DOW did not break the down trend line. Again I iterate I think little Joe is removing his money. People in general ane not as stupid as the government thinks. Just to busy with life and hope to pay attention. BUT they are beginnig to pay attention.

Next week will be one to pay attention to. One more question: how many believe like I do, a crap load of real gold was dumped this week? There is an extra 2 day grace for Easter before anyone finds out. Timing is everything.

Good luck next week

Reg Mills