Yeh there will always be some report that will say blah blah blah the price is too mighty high blah blah don't buy its a train wreck. Using theory in that report I could equally argue that for an efficient mining operation the production cost of gold is $450/ounce. So one is suppose not to be long because prices are trading 3 to 4 times cost of production ? So I guess you gotta figure out also the latency period to get product on market and how that impacts on prices ? That approach is unnecessarily complex - to study all those variables and decipher them into a profitable trading decesion. Will prices break at some point in the fuure? Ofcourse they will eventually break but until that notice is served why not make money on the long side - which I believe is a primary job function of trader who makes his living from market operations and not be too preoccupied about university economic theory. Its simple I have no intention of holding the bag if prices break I will get out and sell short. Will fundamentals and price eventually line up - yeh maybe or maybe not but I'm putting my account to the test based on that theory. Happy Trading on the correct side of price direction no-matter how long is your holding period
Will fundamentals and price eventually line up - yeh maybe or maybe not but I'm NOT putting my account to the test based on that theory.
Yeah, that idea would have fallen apart. I was looking at a quarterly candle chart here of Silver and I gotta say it looks pretty damn bullish. I must admit shorting Silver was a terrible call.
they just hiked margins for gold and silver by 50% and silver shot UP. haha...that is saying something right there.
Short accounts getting emptied by the dozen every minute and as usual they are predicting and arguing this is the top instead of making easy peasy money on the long side. They will celebrate and say they were right when market has a small one or two day correction.
It is absolute folly to believe that hiking margins by 50% will create a selloff. The reality is that it puts the shorts in greater peril/pressure as they are already underwater and being forced to come up with more money to throw at it. The longs are holding large OTE (open trade equity) which offsets the call. I would expect higher margins to create further short covering when we are trading at/near the highs.