Is gold a commodity or is it money?

Depends who you ask?

A link to Bill Cara's thoughts HERE

Although it does seem gold is breaking down and the hedging of the commodities I mentioned yesterday (I bought some GLD puts) may have been wise for the short term. As despite the dollar being lower we still see lower prices in most all commodities so far today. This action will help the Fed state that inflation is under control this week I am sure. Also, for some reason people still buy US bonds when things look uglier for the US - which I understand in normal environments, but an uglier economy now means higher deficits, more bond issuances, and lower US tax revenue. I am starting to look at adding a long position in TBT (ultrashort long term treasuries for a swing).

11:30 update: I bot TBT at 51.9 - stop about 60 cents below