Tuesday, December 9, 2014

Burn Victim Thoughts

Wow wow, interesting day today, ain't it? The Shanghai Comp really got smashed, eh? I think it was down 7.8% intraday when I checked. That's kind of nasty and scary.

The Chinese scare, Greek scare and low Oil/Energy combination finally seem to be scaring some sense into the market. Japan is now on what... it's 4th recession since the GFC? And the US has so much growth that it's bleeding growth out if it's ears of course. /sarc

So it's finally a wet dream for the "trader" in me. Precious metals are out to squeeze some shorts, finally putting me back into breakeven on my physical holdings. Yeah, this is about the price that I've average my holdings to. Catching that falling knife was very emotionally testing. Hopefully we can blast off from here squeezing out all the shorts and make me a billionaire. And trust me, there are plenty in the short precious metals trade.

US indices are off their all-time highs, which were just ridiculous to begin with. I have been short almost all year, cutting losses on higher lows and getting back in on higher highs. As you can imagine, it has been a shitty trading idea. Why not lower highs instead? Because I'm a greedy trader, that's why! So, am I finally going to get some validation that I have been yearning for all year?

Well, in all honesty, I actually think cowboys out there shouldn't flip sides so quickly. There are patterns that show resistance for precious metals coming up. There are also patterns that offer strong support cases for the US indices. There is no sure thing.

WSJ is a pretty legit and wise fellow, has been in the game for 25+ years and I think he's quite right on this one. If we are at this turning point of precious metals turning bull and the equity markets going bear, there is going to be plenty of time to catch this trade and ride it on momentum in the direction it's going.

Take it from me, a repeated chronic burn victim of the market for the past year plus. There's no rush to go short or long yet, especially if you want better odds. But from my eye and where we stand now, odds seem a lot more likely we head lower than head higher. #justsayin

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