The Final 20 Minutes

Close ABX and TLT

By Bryan Bottarelli
Wednesday, July 08, 2009 3:44 PM EDT
Wed, 8 Jul 2009 19:44:00 GMT

Dear Bottarelli Research Member,

As we close in on the final 30 minutes of trading, we’re seeing another strange pattern. For example, coming on the heels of yesterday’s sizable market drop, metals prices are getting pounded today. At the same time, oil prices are dropping, as are the major market averages. And despite the fact that many Treasury followers have described the recent auctions as lukewarm (CNBC’s Rick Santelli gave them a B-, for example), the action in the TLT has pushed it higher.

Personally, I can’t believe why any investor right now would sell gold and buy Treasuries, but that’s just my honest opinion. Either way, we cannot fight against the market tape. As a result, let’s close out our ABX August 35 Calls (ABX HG) and our TLT August 95 Puts (ILT TQ).

ABX

I continue to feel strongly about the long gold/short Treasuries play. Going forward, perhaps there will be a time for us to re-enter into this position. But for now, let’s exit the plays and search for better opportunities. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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