Shorts Getting Squeezed And Starting To Panic
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The short squeeze in metals continues and it appears the shorts are starting to panic. The rally, as good as it looks, is not very healthy and before it ends, gold could see $1,325 and silver could see $17.20. Thatâ€™s the funny thing about short covering rallies; they look so good right before they collapse.
Helping the rally has been the pressure in the cryptocurrencies, especially the Bitcoin, which has been under pressure. Now, governments around the globe are trying to set regulations on the digital space. South Korea is talking about banning the cryptocurrencies, but I donâ€™t know how. However, that has brought a little fear to the space and brought money back to the metals.
We remain long-term bullish and short-term bearish the metals. As investors, we will hold; as traders, we will try and capitalize on the expected down move. Our expectations are a test of the recent lows as soon as the shorts are squeezed out.