The Shanghai Stock exchange has closed positive eight of the last nine trading days.

I noted Fast Money pushing gaming stocks today.

I highly doubt gambling stocks have bottomed. Shuffle Master (SHFL)? Did they beat? Really?

How is Vegas? Is anyone out there? Are the tables crowded? I Need data points.

In a segment not related to Gaming stocks, Tim Seymour said to “know your counterparty.”

This is good advice and I am not being sarcastic. Always know your counterparty. When things get crazy it always comes down to your counterparty. If you don’t know who it is, how can you find them if you need to collect?

Always know your counterparty. Refer to my prior post: Party and Counterparty Risk Demystified.

Will claims (derivatives) on gold (GLD, futures contracts, options, options on futures) cause the spot price of gold to be more volatile than it’s been in prior inflationary cycles?

Remember, there are far more claims to gold available for trading than were available in the 1970s.  In the 70’s we lacked the widespread access to derivatives that are available to us now.

This will likely make the movements in gold, silver and the miners more volatile during this inflationary cycle.

For all these reasons, gold will be a great market to trade over the next few years.

As for now, gold continues to trade in it’s recent range.

Gold Futures

To put things in perspective, I offer the following:

1) Government risk is priced very near October 2008 levels.

2) Financial institution risk is at July 2008 levels.

Position yourself accordingly.