Commodity Trade Mantra

Posts Tagged ‘Overbought’

Silver Outlook: Short-Term "Overbought & Volatile", Long-Term "Positive"

Commercial short & Large Spec long positions in silver have built up to a very high record level, making a reaction back soon a high probability. Bullishness towards silver is now at extreme levels, and while this doesn’t always lead to an immediate reversal, taken together with the other factors, it does suggest that caution is in order with respect to silver’s immediate prospects.

Gold And Silver Getting Grabbed On Each Manipulated Slamdown

Currently gold is behaving similarly to the way it behaved back in 2003 when it was trying to punch through $400. The “overbought” garbage was permeating the media back then just like now. This market has been surprising everyone to the upside and will continue to do so. At some point the lemmings who blindly soak up the “market is overbought” fairy tale will be running to catch the train.

What Is Really Driving Gold?

Electronic trading should not be underestimated. Its driving markets more than ever before & the gold market is no exception. That is not to say we like it; its simply the way things are nowadays. COMEX helped fuel the gold rally, but it is doubtful whether it was the ‘driver’. The clearest driver has been inflation expectation.

The Smart Money Is Selling, Not Buying - Goldman Warns

Since the smart money knows that buying anything at 10x or 11x EBITDA usually ends up wiping out the equity tranche when generously levered courtesy of today’s insane, broken, manipulated & centrally-planned market, it is not touching the market with a 10-foot pole. The only question is who starts the selling avalanche & when?

The Line Between Rational Speculation and Market Collapse

At present, the fact that we are highly concerned about market risk is a reflection of a market environment that joins extremely overvalued, overbought, overbullish conditions with still-troubling dispersion in market internals and a widening of credit spreads. Our concerns about market risk remain extreme at present.

US Dollar Super-Overbought

The bottom line is the US dollar is super-overbought & will soon crumble. The US dollar falls as fast and far as it rose, reversing all the peripheral trades that suffered during the dollar’s rally. So sell the US dollar high when everyone loves it, and buy euros, yen, oil, and gold while they are still low before they rebound.

Time To Be Defensively Pro-Active In Stock Markets

Now is the time to take stock of your stocks and weed out poor performers rather than hold in hopes that they’ll catch up to the rest of the market, as there are some warning signs of which one should be aware- Use tight stops for the rest

Why Is The "Smart Money" Selling And To Whom?

“Smart Money” Selling and to Whom? – It appears that the “the Smart Money” is lining up to exit the markets by selling their investments off to unwitting retail investors as a “Good Deal”

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