LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

COT Gold, Silver and US Dollar Index Report - May 29, 2020
By: GoldSeek.com

The Comex Has Big Problems
By: Dave Kranzler

Scammers Exploit Pandemic to Peddle Fake Silver, Phony Collectibles
By: Mike Gleason

Silver Miners’ Q1’20 Fundamentals
By: Adam Hamilton

The Dollars And Deaths Of COVID-19
By: Bill Sardi

Fibonacci Queen and Elliott Wave King Market Proclamation
By: Avi Gilburt

Asian Metals Market Update: May-29-2020
By: Chintan Karnani, Insignia Consultants

Silver and Gold: Balancing More Than 100 Years Of Debt Abuse
By: Hubert Moolman

Precious Metals Update Video: Market cycling money out of tech, Gold is acting very good
By: Ira Epstein

HOUSTON WE HAVE A PROBLEM: Dow Jones Index Totally Disconnects From The Employment Data
By: Steve St. Angelo, SRSrocco Report

 
Search

GoldSeek Web

 
One of the Biggest Short Covering Rallies in History May Be Imminent...

By: Clive Maund

 -- Published: Wednesday, 25 March 2020 | Print  | Disqus 

In recent days the Fed has made it plain that it is prepared TO BUY ANYTHING AND EVERYTHING to prevent imminent total collapse, and you don’t have to join many dots to see that this will extend to BUYING STOCKS, and it’s not that hard for them – all they have to do is enter a few keystrokes, add a few 0s and it’s sorted – and as Gregory Mammarino repeatedly points out, the more debt they issue the more powerful they become.

Right now sentiment is “end of the world” negative, and any positive development will be enough to trigger a gargantuan self-feeding short covering rally and gold’s huge recovery is a sign that this may be about to start.

It is therefore most interesting to observe on our 3-year chart that the S&P500 index has just hit our long held target at the bottom of its giant Bullhorn pattern, and it has done so with the market in a stupendously oversold condition, at a record by far…


The conditions are therefore believed to be ripe for a screaming short-covering rally, and the only question is whether it happens immediately or after some volatile zig-zagging around in the vicinity of these lows. Action in gold suggests that it will happen almost immediately. Anything that causes a shift in investor perception could trigger it and once it starts it could be unstoppable for a while as shorts race for cover.

The conclusion to all this is that this may be an excellent time to “put our best foot forward” and do Calls in the broad market, for which purpose we can use the S&P500 proxy, SPY, whose chart is shown below for the same timeframe, and on this occasion it may be worth doing the trade in reasonable size, but again don’t go overboard and bet the farm. Look at it this this way – there is considered to be 50% chance of a sudden scorching snapback rally, and if it works the options we are looking will rise about 4-fold or more. The whole thing could burn out and reverse to the downside again quickly, but by that time we will be out, if things go to plan. Just because the market rallies here or soon won’t mean the bearmarket is over. Although the rally could happen immediately, it might be preceded by some base building, which is why we should go out a few weeks with the options.


An SPY March 17th expiry options table is shown below, and you can choose any series to suit yourself, if interested, and a could of suggestions have been highlighted on it.

Table courtesy of bigcharts.com


With futures showing the Dow set to open up about 930 points, it may be best to buy some soon after the open, and then wait for an intraday dip to do more, bearing in mind that there may not be a dip.


End of update.

Clive Maund

www.CliveMaund.com
Posted at 9.20 am EDT on 24th March 20.


| Digg This Article
 -- Published: Wednesday, 25 March 2020 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus

Web-Site: CliveMaund.com



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.