However, the trades in equities are not the monsters of the era, those are the currency and debt trades and the commodity shorts. EURO, Dollar, Pound, Silver, Oil, Gold, Palladium, the softs and hards...it does not matter they are all destined for a major collapse. However, I expect this panic in the equity markets to trigger further distortions in these markets. Targets remain as I have said a few weeks back: EURO - 1.47 to 1.49 and Dollar Index - 71 to 69. The action, will not be orderly...and Eric Sprott, among many others, will be broke when the ashes are revealed.Well, indeed, in my opinion, we are facing the perfect set up for a massive crash, and which asset is bubbling at the moment, and making all the headlines, making new all time highs everyday like oil did back in 2008 while the markets were imploding? It's gold.
So I believe gold is the last bastion of greed and speculation, like oil was, except that you cannot find any bear on gold, not even deflationist like Mish can think of gold going lower.
I think gold either has peaked, or will peak just shy of $2,000, the way oil peaked at $147 just shy of $150.
Now, the main issue is that IV is very very high, so shorting gold with put options is very expensive. I am now waiting for a nice set up to short it out-right buy going short GLD shares.