Gold Traders Surrendering

The purpose of the current tree-shaking is very effective. When you have leveraged traders in a hot market, nothing can cool off a trade better than just pushing the trade sideways while chewing up the mo-mo crowd with a sentiment killing, decaying leverage trade. A significant number of these new weak hands will give up and exit this trade. These are not retail, they’re hedgees, trying to front run the big boyz. Nice try but they’re getting chopped up and puking. Just as they do the real power behind the trade will suck up these weaker shares like a hungry hog in slop. Its the game. Its worked for decades and decades. Now they even have new technology to aid them with Algo’s and HFTs but the basic strategy remains the same. Shake the leaves and pick um up cheap. This trade turned back in the Summer….it was a stealth turn but when the big up move began a couple of months ago, there was no mistaking the trend change. Ben’s QE to infinity just confirmed the technical picture that was already there. NOW we are into a massive move. When this game is over most of us will not be ANYWHERE near this trade. It will be that massive and the volatility THAT dramatic. It will shock you to your core. Short term correction now, so enjoy. Its been a very busy week for me, but the next two will be much better so I hope to join the comments more….gl