Guest Post by Tom Luongo
For bear markets to truly end investor sentiment has to get to a point where they would rather walk on broken glass than buy that asset or asset class. We’re reaching that point in the precious metals market.
In conjunction with that we also have to see arrogance on the part of short-sellers convinced that all rallies will be sold, keeping a lid on prices. It doesn’t matter if buyers come in at higher prices or above significant technical support levels, they will push because they become convinced this is a one-way trade.
We see this in the government bond markets as well. In traderspeak it’s called the [Insert Head of Central Bank Here] Put. The Greenspan Put begat the Bernanke Put which morphed into the Yellen Put.
Continue reading “Signs of the Gold Apocalypse: M&A and Fund Extinction”
