We think alike. I imagined today that I would buy more around .80 also.

I am in a cheerier mood, thanks to a doubling down on ZSL (ultra silver short), which I bought as protection from my still-held shares in KBX, SLW, and EXK. It was one of those well-timed buys that tempts a trader to imagine that he knows what he is doing.

I sold half of the ZSL at today's close. SLW has lost 12% in four days. I think there'll be a respite soon.

Kimber's behavior is strangely hopeful to me. Yes, we gave up 19% in five days, but I would have anticipated a greater drop given the commodities sell-off (gold itself is down about 10%). It makes me think that it was indeed new money that came in after November.

Still, I'm saddened to see us miss a chance to break out of our descending channel. Next up is the one dollar support / resistance, which was meaningful in the first half of 2010.

But here's an emerging idea. Imagine some of Europe's banks are nationalized, the dollar *appears* even stronger, gold keeps falling, and KBX's suite of inconstant lovers leaves their keys at the front desk.

Now comes depressed prices, lower (or stable) oil, and an election year with employment still struggling. Bernanke is emboldened to QE3, and Europe is bullied into a similar policy -- their historical fear of inflation overcome by acute, present issues. And KBX happens to be lulling at 78 cents while gold finds its footing.

Yeah, I'm just dreaming, I know. But I lived that dream with KBX in 2009. We know what happened after that. I'd be dismayed to live it again, but this time, I'd know what to do.