Likely a bounce

If Ambac gets the rescue, likely the market will have a decent bounce, since we're oversold and bears could not move the market any more.

I think gold is at a critical point, either we pass through $1000, or we consolidate right here, before make another push higher. I think the game plan is to add over time.

After carefully reviewed GDX, DBC and GLD. I think now is a time to just buy GLD. There are risks involved in GDX, and recently GLD outperformed GDX.

So I'll reduce GDX, I already sold DBC. And I added DGP, it's double gold ETN. If I truly believe gold will do well in the next 12 months, DGP will likely to double the return of GLD.

So my plan is simple:

1. GLD and DGP are the main positions to build.
2. Reduce GDX.
3. Hold some small speculative positions, currently I have AAPL and ABK. I think both of them will have a big bounce if positive news come out. I almost pull the trigger on MF when it came back from 14 and finished around 17, but I didn't and missed it.
4. Watch DBA, DBC. They are too far ahead and if economy is heading into a recession, common sense says commodities shall head lower.
5. China will control price on foods, said the premier, this will cool the red hot commodities markets over time.
6. So to play inflation over the next 12 months, or this economic cycle, gold should be the main focus. GLD and IAU. If you're very aggressive, then DGP.
7. GDX will outperform GLD in a normal environment, but with energy cost and environment protection around the world, I think the cost of gold mining will increase dramatically, so GLD is far safe bet than GDX, even with less return.