From today's Gartman Letter...... (9-17)

"It is the gold market that frightens us the most, however, for the market is terribly, egregiously, preposterously, shockingly over-populated by late and ill or under-capitalized longs. We are told that the daily Market Vane bullish consensus number is now at 88%. This is the highest level to which this index has risen, and it is at “nose-bleed” territory, having risen to a level not seen since the spring of ’08, from whence gold prices dropped precipitously. Tread very, very cautiously up here, ladies and gentleman, and be prepared to run for the exits at a moment’s notice for this market has the ability to turn for the worse and to do so swiftly and violently. Like a flock of black birds first flying in one direction, and then switching direction in beautiful unison, so too the gold market when the bullish consensus becomes this one-sided.

We are far more comfortable being long of gold in Sterling and EUR terms than we would be in terms of US dollars, given the enormity of the short positions in the dollar and the equal enormity of the long positions in gold. Gold, as we write, is trading £616.60, up from £614.95 yesterday. We’ll sit tight a while longer, but we shall not own gold in US dollar terms under any circumstance. Others may; we won’t."