The battle between safe havens and risk on continues
With all the fear around the world it is fascinating to watch the battle that is underway between risk on and risk off assets. Chris Vermeulen joins me to share the way he is trading these markets and what he thinks will cause a breakout in either risk on or risk off.
Yo Matthew!
Whats up with BBB. It looks weak. Is it maybe a short-term double bottom we are seeing?
I will probably load up tomorrow.
I think the weakness is still due to private placement shares hitting the market after the mandatory 4-month hold on them. Less bullish/confident private placement participants sell their shares to take a risk-free ride with their warrants. If silver builds on today’s move and continues higher, many will choose to ride their shares along with their warrants (almost nobody likes to sell strength).
It would have to go lower to satisfy double bottom requirements but it could still be a bottom.
Regarding the COT, open interest is up roughly 25% since gold peaked in September so the current commercial short position isn’t nearly as negative as some think.
Of course we might now have a squeeze developing so a “bad” COT report might be a good thing.
SILJ made a new 52 week high by one cent in after hours trading… up 6.66%
The other ETFs are also up with GOEX up 7.03%
The gold miners are doing well in Australia right now…
https://www.tradingview.com/x/d34Xqgwr/
It’s interesting, The ISLVF:AXU ratio chart looks like ISVLF is set to outperform. Similarly, the BBBXF:ISVLF chart looks like a double bottom is in play.
I agree with that.
ISVLF:SILJ
https://stockcharts.com/h-sc/ui?s=ISVLF%3ASILJ&p=D&yr=1&mn=0&dy=13&id=p40105265065
Risk-on won today. Here’s SLV priced in GLD:
https://stockcharts.com/h-sc/ui?s=SLV%3AGLD&p=D&yr=1&mn=0&dy=0&id=p70573250396