The battle between safe havens and risk on continues

January 7, 2020

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.

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    Jan 07, 2020 07:01 PM
      Jan 07, 2020 07:40 PM

      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.

        Jan 07, 2020 07:03 PM

        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.

    Jan 07, 2020 07:06 PM

    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.

    Jan 07, 2020 07:13 PM

    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%

    Jan 07, 2020 07:24 PM

    The gold miners are doing well in Australia right now…

    Jan 08, 2020 08:52 AM

    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.