GSR & VIX: Code Red

I have been sounding this alarm as best I can for the last few days. 'GSR' Code Yellow... 't-bill rates declining relative to long ones'... 'BKX (and thus hope) nearing target'...

Otto and I had an email back and forth about some bull on SeekingAlpha pumping our dear FRG with a target of 4 bucks based on, duh gold is going up, uranium is going up and copper is going up. The guy had an exclamation point in the title of his piece and Otto commented how that is a dead giveaway to a pump piece.

So I am sensitive about trying not to sound like a tin foil hat wearing alarmist here with the code yellow, code red stuff. Indeed, the Dow could digest today's down and roar up 100's of points to above the SMA 200 at any moment. But the risk would still be rising.

The gold-silver ratio has nearly reached target. Same with the VIX. Speaking of risk, I will risk saying this once again in the face of the general financial pumper apparatus that is seeking to make you feel good; Code Red. Consider capital preservation as part of your strategy.

Oh and let's not forget about all the folks who took it on confidence to buy long term treasuries. They may finally get some relief as rates are a major cause for concern now. Where's China? Where's Ben? Where's LARRY?? Hey fellas... where'd everybody go?

Edit (4:18) Here is a quote from a Reuters article hot off the presses:

"The auction is big news because now it shows that maybe the Chinese don't want our bonds..."

Duhhhhh. Why do you follow bloggers that you feel are honest? Why do you subscribe to newsletters that you feel are honest? Because right or wrong you know that honesty is the most vital part of the equation. From NFTRH28:

Short rates are grinding lower, which shows that somebody remains in alert mode. Why do I feel it could be our large foreign creditors seeking relative safety from the US government’s inflationary policies while average folks are encouraged (“Summers is a liar” in the words of an NFTRH subscriber who has all the credentials you could ask for and knows of what he speaks) by the likes of Larry Summers to view US Treasuries as sound investments?

I guess I am a bit cranky today - it comes with being short, as that stance is contrary to my usually sunny nature :-) - but this really pisses me off. Some guy in Reuters land is just figuring out what honest people should have known weeks or months ago?

Edit (4:31) There, I just dumped SKF in after hours for $480 profit on 150 shares and a few hours 'work'. When you're dealing with crooks, you take what you can get and preserve your sunny disposition. ;-) Now if they can come up with some stress test hype maybe I'll re-enter. Otherwise, see ya, it's been fun.