Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

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

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

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 1% and 2% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 17 2017
By: Ira Epstein

Next-Generation Crazy: The Fed Plans For The Coming Recession
By: John Rubino

COT Gold, Silver and US Dollar Index Report - November 17, 2017
By: GoldSeek.com

Gold Minersí Q3í17 Fundamentals
By: Adam Hamilton, CPA

Bonfire of the Absurdities
By: John Mauldin

The Social Security Inflation Lag Calendar - Partial Indexing Part 1
By: Daniel R. Amerman, CFA

Rob From The Middle Class Economics
By: Gary Christenson

GoldSeek Radio Nugget: John Williams and Chris Waltzek
By: radio.GoldSeek.com

The Metals Market Is A Mess And Will Likely Continue To Frustrate You
By: Avi Gilburt

 
Search

GoldSeek Web

 
It's Too Early to Short Stocks


 -- Published: Sunday, 13 March 2016 | Print  | Disqus 

By Gary Savage

Here are the cons to shorting the stock market:

The Fed and the PPT have a printing press. They have access to unlimited amounts of money, and they are extremely motivated in keeping the stock market propped up.

Most of the world is experiencing negative interest rates. Money is flowing out of those bond markets and it has to land on something.

The combined contracts in the COT index funds are net positive 29 billion. The biggest, smartest, and best capitalized traders in the world are bullish, and not just mildly bullish, they are heavily bullish. What do they know that Joe Sixpack retail trader armed with his stockscharts subscription doesnít?

cot

The larger intermediate cycle is only 4 weeks old and barely half way through the first daily cycle. There is virtually no scenario where an intermediate cycle tops this early other than a potential financial earthquake in the immediate future and that clearly isnít impending. As a matter of fact, the one sector that could have triggered a financial panic was energy but that has reversed aggressively over the past 4 weeks. So that bomb is being quickly defused.

spx

Stocks tend to rally the strongest when the dollar is rising. The dollar is going to be due for an intermediate bottom next week followed by a multi-week rally.

dollar

We know that a 7 year cycle low is due, actually itís overdue, and the rally out of the recent bottom has been one of the most powerful in terms of breadth in the last 60 years. Thatís exactly what I would expect to see as the market comes out of a 7 YCL.

Sentiment isnít even vaguely close to levels that would trigger an intermediate top, not even if this were a bear market rally.

The intermediate score is dead neutral. Thatís not the level where we are likely to run out of buyers.

intermediate score

Source: Sentimentrader.com

The most clueless traders, dumb money retail, are still buying puts hand over fist. Until these emotional traders start buying lots of calls itís unlikely that we are anywhere close to this intermediate cycle topping.

robo

Source: Sentimentrader.com

The advance decline line is again making higher highs.

ad line

And finally the PPT has murdered what should have been a half cycle low, and in the process driven the S&P and Dow through resistance, and back above the 200 DMA.

dow spx

So if you are trying to short this market, I have to ask: What the hell are you thinking? Iím about 85% convinced the 7 YCL is complete and we are at the very beginning of the bubble phase of this bull market. This isnít the time to be shorting. This is time to get in early and ride that bubble phase to some really big gains over the next couple of years.

For 16 years the pattern hasnít changed. The Fed prints too much money and keeps interest rates too low too long. It causes a bubble. The bubble pops. Markets crash. Then we start all over again.

The time to short will be after the next bubble forms. Be patient. Wait for stocks to go parabolic. Wait till you see the public piling into an asset class like they were in tech in 2000, and housing in 2007, and then short the market.

http://blog.smartmoneytrackerpremium.com/


| Digg This Article
 -- Published: Sunday, 13 March 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



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 - 2017



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

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com 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, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.