Bear Growls

caveentry1

[This content is protected for Refined Investor subscribers only.]

Good trading all.

Steve Chapman, TRI


Subscribe now for less than $1/day!

If you would like to subscribe to The Refined Investor, then please visit the subscribe page above for more information. A subscription to The Refined Investor includes 5 daily reports per week with complete coverage of equities, currencies, commodities, and moves of interest from around the global markets. Complete strategies and risk management are presented in an entertaining and educational format for the independent investor. Subscribe today!

12 comments on Bear Growls

  1. Scott
    March 27, 2014 at 5:59 AM (5 months ago)

    Hi Steve, what are your thoughts on emerging markets here? EWZ looks strong.

    • Steve Chapman
      March 27, 2014 at 6:02 AM (5 months ago)

      India is very strong and EEM made a higher high yesterday. I think money is leaking out of US Stocks and into emerging markets. They definitely have the negative sentiment between the Russia situation and the China credit problems to create a short squeeze if the worst is already priced in.

  2. mark giangreco
    March 27, 2014 at 6:26 AM (5 months ago)

    Steve, I can understand India where they’ve done all they could to discourage gold buyers which should inure to their market’s benefit.. But, how do China and the rest of the emerging markets go up without the commodity sector and gold (assuming the bear is back)? Seems counterintuitive…which may just answer my question:)

    • Steve Chapman
      March 27, 2014 at 6:34 AM (5 months ago)

      Short squeeze. If there are too many shorts in a trade due to sentiment then the big money keeps them honest. When price goes up it can either be about fundamentals (bullish) or too many weak hands on the short side (bearish after the squeeze happens). Bullish price action tends to be slow and deliberate until an ultimate parabolic top while bearish price action tends to be fast and exciting which draws people in and then forces them to sit in a losing position for a long period of time.

  3. Dutchisu
    March 27, 2014 at 9:12 AM (5 months ago)

    Man this selling is relentless. I would think there has to be bounce in her some where. Maybe it will come from Gold $1190. That would be my luck. I covered my puts a few days back thinking there was going to be a bounce and now it looks like we are going straight to $1190 with no stops.

    • Dutchisu
      March 27, 2014 at 9:13 AM (5 months ago)

      Note there was a hint of sarcasm in my last post.

    • Steve Chapman
      March 27, 2014 at 9:51 AM (5 months ago)

      Margin calls. They got a lot of people that loaded up too much at the top.

  4. kewl2
    March 27, 2014 at 10:37 AM (5 months ago)

    GDX is within shooting distance of the 23.18 (61.8%) that you mentioned on the weekend report. No sign of miners or PM’s on the WSJ “buying on weakness” reports either. Looks like it may go below the $1285 POG before this runs out of steam…….

    • Pablo
      March 27, 2014 at 12:35 PM (5 months ago)

      we got a nice reversal on miners, but not on gold. do miners lead here?

  5. diverlee
    March 27, 2014 at 11:57 AM (5 months ago)

    Go figure… silver is the relative PM hero today…

  6. Dutchisu
    March 27, 2014 at 1:07 PM (5 months ago)

    Steve

    I have a general question you may or may not be able to answer.

    What does GDX always have a huge spike in volume right at the end of the day? This volume spike is often a considerable percent of the total days volume but it never drives price up or down much at all.

    For example on March 26th over 10 million shares traded hands in the last 30 minutes which was 25% of the days total volume yet price was flat.

    http://stockcharts.com/h-sc/ui?s=GDX&p=30&yr=0&mn=0&dy=15&id=p01936100445&a=315946849

    • Steve Chapman
      March 27, 2014 at 6:41 PM (5 months ago)

      It could be the rebalancing of the ETF or dark pools volume. I have always noticed it too.