The headlines stress the fall in gold is the largest since 1980. This date has no significance. The price is all that matters right now and it still hasn’t shown support. The bombing in Boston was a truly terrible way to get this market to sell. Now the Bears aren’t even enjoying the decline because of the news it’s attributed to. I think the sad news could cause some bears to cover too early, which will hold up prices, but more downside isn’t out of the question. Bearish sentiment is too high for a full blown correction, but some jerky moves up could frustrate the bears and cause them to cover on spike ups, only to see the market have no follow through to the upside the next day. This seems like the most frustrating case for bulls and bears alike, so it’s the most likely outcome. The ETF put/call ratio came in at 200% today, so we know too many people got way too bearish. Selling them puts should be the right strategy.

Meanwhile, Congress proves is can compromise on one issue: their ability to trade on inside information