This trade worked out about as perfect as could be; we started Powershares Gold Double Short ETN (DZZ) @ $18.90 late Monday and today we are out around $21.35; this was a 13% gain in roughly 3 sessions. My position size was too small (1.4% stake) but this was my first time trying this ETN, so until I see how something trades "live" I don't get too large into a position. Gold could go lower but we got the easy part of the move (fat pitch). If the market rallies through S&P 783+ and to 800, I expect gold to further weaken and we'll revisit but GLD has pulled back exactly to support; GLD certainly has room to fall to $88 but we were looking for $92 and it's close enough. Trademark technical trade. Might even go long but would prefer to do so down around $88 - we'll see.
Original thesis (from Monday's post) as follows -
Despite signs of panic in the equity market, gold is NOT surging today. We mentioned in this weekend's summary the reasons for the short (crowded trade, everyone loves gold, double top with March 2008 highs) so I won't rehash it in detail; this will be a short term trade trying to get about 15% if I can. I will use GLD ETF as my trigger. 
We're at $98 on GLD, I see it pulling back to lower $90s ($92?) - when we get there I'll exit out of Powershares Gold Double Short (DZZ) I'm starting with a 1.4% stake around $18.90... if we get a panic open tomorrow and gold spikes I'll add more. First time I have touched this instrument so hence the relatively small position size. I love crowded trades because I know the guy on the other side of this transaction was me about 9 years ago ;) Long Powershares Gold Double Short in fund and personal account 
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