In mid-2018, the metal plummeted from $1,360 to February 2017 support at $1,180.
There were two reasons for that.
One, the U.S. dollar was rallying. And two, there were arguments for the Federal Reserve to raise interest rates on economic growth.
And there was no shortage of bearishness.
“Wagers on gold’s declines outnumbered bets on price gains by 78,579 futures and contracts in the week ended Aug. 21, according to U.S. Commodity Futures Trading. That’s the fifth straight week that money managers boosted their net-short position on the metal,” said Economic Times.
“Gold Investors Give up Hope as Biggest Short in History Builds,” blared Bloomberg. “Gold is hitting new milestones of misery. Exchange-traded funds tracking the metal have bled assets for 13 consecutive weeks... [and] investors have placed the biggest gold short on record.”
“Speculators are also net short for the first time since December 2001, when gold was priced at $275 an ounce, according to Peter Boockvar, chief investment officer at Bleakley Financial Group, as quoted by CNBC. "It's literally off the charts. 215,000 contracts is double what it was the third week of June, triple what it was the second week of June. It's up nine weeks in a row.”
However, that’s not a sign that investors should be short.
Instead, it’s a contrarian’s dream come true. When traders become this bearish, it’s time to start buying. It’s time to buy the blood in the streets, as Baron Rothschild would say. It’s time to buy the excessive pessimism, as Sir John Templeton would say.
Lee Gettess is a top trader who is excited to bring you his video newsletter. Each week, Lee will share his predictions on what he anticipates from the bond and S&P markets.
I have found that my particular use of options mixed with my charting abilities (which I can teach you) provide more profit than any other of the 50 systems and advisory services that I have tried.
We want to leverage our money in the markets. We want is to use a little bit of money to make lots of money in the markets, rather than using a large amount of money to make a little bit of money in the markets. How do we do this? To leverage your money in the markets, the most common way is to use options on stocks.
When you buy a call option, just like when you buy a stock, you are betting that the stock will rise in price. When you short a stock or buy a put option, you are betting that the stock will go down in price. The difference between buying stocks and buying options is the amount of money that is exposed to the whims of the market.
The first profit opportunity we will review is in SOXL, the Direxion Daily Semiconductor Bull 3X Shares ETF. SOXL seeks to yield results that correspond to three times the daily performance of the PHLX (Philadelphia Stock Exchange) Semiconductor Sector Index.
The overall trend in SOXL has been very bullish since the 2016 low. It’s been trading in a very wide range since last November. This month’s trading suggests that the uptrend could be resuming.
The overall trend on the daily chart is also bullish. The bulls have been in control this month. This could mark the beginning of the next leg of the bull move.
We are going to review a Call Debit Spread for SOXL.
Traders who want a more leveraged approach could consider buying SOXL calls. SOXL has options expiring in September, October, November, and February. Click Here to follow this trade.
That’s because 7 years ago I discovered a foolproof Bellwether Profit Secret that takes all the guesswork out of trading…
Producing an average profit of 106.27% on roughly 9-out-of-10 trades Regardless of market conditions.
Today I’m going to reveal every detail of my Bellwether Profit Secret to a select group of aspiring traders who have yet to achieve the success they deserve. And you’re invited!
Tomorrow, you could begin doubling your account every single month starting with one letter.
The letter will come from a 20-year trading professional named Ian Cooper. He says, “In 2017, following my trades you would be doubling even tripling your account some months. Let me show you how.”
He will show you exactly what to do... and he’ll give you the blueprint for just $1.
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