Painful but healthy

I'm a great market timer, at least for the gold market. Am I right? In the last a couple of months, I have almost pinpointed the exact time when I thought the gold price might turn. You see, within 2 days after I said the gold price was too high in the short term and it should come down, it plunged over $150, about 8% drop from $1917 two days ago to $1760 today. Of course, don't believe me and it is purely a brag. Regardless of how accurate I am, it is a pure coincidence, period. I cannot and no one can consistently time the market. But I must say I do have quite a good sense now about the trend of precious metals. With this sense in hands, I can now hedge better against such kind of short term risks than what I could in the past. As I said, I have placed some short positions with GLL options to anticipate this kind of gold correction. Similarly I also have some short positions for silver. Therefore, while I'm also experiencing quite painful short-term squeezing of my position values for gold and silver, definitely my pain is much lessened with the profits associated with those short positions such as GLL etc. This is kind of beauty you will see if you know how to hedge. I hope you've at least learned some of them via my blogs.

So it is really painful with such a severe and fast drop of gold and silver prices. I believe I have said before that this kind of severe correction is actually healthy for the gold/silver bull market. You may ask whether the correction has come to its end. The short answer is that I don't know. But the good sign is that I start to hear the talking heads saying something like the gold bubble is bursting and its bull time is over. The more such negative people emerge, the better chance that gold is closer to the bottom of this correction. My gut feeling is that this time gold may need to further drop to $1600s before turning around. I feel happy that more buying opportunities are coming.