kingworldnews.com
On
the heels of increased volatility in the gold and silver markets, it
appears that the silver shorts will look to smash the price of silver in
coming weeks — here is why…
From Jason Goepfert at SentimenTrader: “Silver
is facing a tough row to hoe. The smart money is at near-record short
exposure while options traders are betting on a further rally and
seasonality is about to peak…
Silver’s tough row to hoe
Late
last week, silver took a tumble. It looks like traders are anticipating
some headwinds that have become clearer in recent days.
“Smart
money” hedgers have established near-record short exposure to the metal
while the typically wrong-leaning options market is showing one of the
largest bets on silver via the SLV exchange-traded fund (see chart
below).
All
of this is occurring at the same time that silver has a tendency to
form its high for the year. Seasonality for the metal peaks in the
coming days, with a relatively steady tendency to decline into June. Not
a great setup for those looking for silver to burst higher in the
coming months (see chart below).
King
World News note: From a contrarian perspective, the silver market has
major warning flags waving right now. That does not mean that the price
of silver cannot head higher in the short-term, but it does mean that
traders who are long should be cautious and understand that the market
odds are stacked against them. Meaning, the commercials may push the
price of silver significantly lower unless some extraordinary shock in
global markets changes what is normally business as usual for the shorts
where they look to rinse the weak paper longs.
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