Jim is absolutely right - Please make an effort to stay balanced. Greed is a condition of lack of balance similar to fear.
Human behavior driven largely by evolution ensures that Jim's pleas for balance of mind, body, and spirit will go unheeded. Emotion is the enemy of trading profits, but few traders ever achieve balance within a world that cajoles and encourages the instinctual responses such flight or fight (fear and greed).
Gold was first to record seismic activity that warned of an impending price eruption in 2008. This rumblings was followed by significant seismic activity in the silver market. While a similar pattern is unfolding in 2012, it will likely go unrecognized within a community currently unbalanced by fear.
Chart 1: Gold London P.M Fixed and Long/Short Concentration Index (CI): 1 = Bullish Setup, -1 = Bearish Setup
Chart 2: Silver ETF (Silver) and the Silver Long/Short Concentration Index (CI): 1 = Bullish Setup, -1 = Bearish Setup
How many those gold and silver sellers reallocated to bonds? The message from the market says bad idea.
Chart 3: US Treasury Bond 20YR+ (TLT) And US Treasury Bond Diffusion Index (DI)
The invisible hand is repositioning against the fear in plain sight. Why not? Everyone is too busy screaming and bitching to notice. The top ten inflows for the future and options markets which includes gold, silver, precious metals, Australian dollar (commodity currency), and copper reveals its true intentions despite the inane headline chatter.
Table: COT Futures and Options Money Flows
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