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 Close with Modest Losses but Miners Gain on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 24 2017
By: Ira Epstein

Life Under Manipulation
By: Theodore Butler

Legendary investor names his top junior resource stock picks right now
By: Peter Spina, President, CEO of GoldSeek.com & SilverSeek.com

Silver Miners’ Q3’17 Fundamentals
By: Adam Hamilton, CPA

Deflation must be embraced
By: Alasdair Macleod

Gold’s 47-Year Bull Market
By: Steven Saville

Taxes, Macro Signals, Seasonality, US Stocks and Gold Miners
By: Gary Tanashian

The Key to Profitably Ending Precious Metals Price Suppression And Other Markets Manipulation!
By: Deepcaster

The Precious Metals Bears' Fear of Fridays
By: Dimitri Speck

 
Search

GoldSeek Web

 
A Faint Whiff of Fear

By: Rick Ackerman, Rick's Picks

 -- Published: Friday, 21 August 2015 | Print  | Disqus 

After yesterday’s selloff, we might benefit from pondering market psychology right now. Even if we get it wrong, merely knowing by how much could be of use later. My take in recent months has been that short-covering constitutes the only source of buying power — i.e., that there are no bullish buyers of stocks, only bears made nervous by whatever news could be construed as even remotely bullish.  Of course, more than six years into the most powerful and relentless bull market of them all, bears who have been betting the ‘don’t pass’ line have grown understandably skittish. That’s why they chased shares higher on the unsurprising ‘news’ Wednesday that the Fed was backing off its September commitment to a rate hike. The rally didn’t last long, and when the reversal came in the early afternoon, it started an avalanche that spilled into Thursday, producing the steepest rout Wall Street has seen in 18 months.

It Feels Different

Now, the question we should be asking ourselves is whether short-covering is about to erupt just as it did each and every time stocks weakened for more than a perfunctory few days in 2015. My gut feeling is that the broad averages will need to fall significantly lower before this effect kicks in. Although yesterday’s selling was more or orderly, if nasty, there was a palpable sense toward the end of the day that fear unlike anything we’ve seen since last autumn was starting to creep into investors’ fevered minds.  This selloff ‘feels’ different, and it may need a washout to produce a sharp short-covering rally. When it comes, don’t make the mistake of underestimating its strength. A short squeeze can flout logic so maddeningly that even the permabears will be convinced they had it wrong. Yes, there are now a score of compelling reasons, many of them technical, to think we’ve entered a bear market. But it is the very acceptance of this idea that will fuel the next big rally; and if the idea is shared by nearly everyone, it’s hardly inconceivable that the rally, defying all reason and logic, will achieve new record highs. That’s what memorable short-squeezes are all about, and we should not presume to know their limits. Click here for a free two-week trial subscription to Rick’s Picks that will give you access not only to daily trading ‘touts’, bulletins, updates and impromptu trading sessions, as well as to a 24/7 chat room that draws veteran traders from around the world.

 


| Digg This Article
 -- Published: Friday, 21 August 2015 | 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.