Sigh..... After getting our gambling asses handed to us the past few months and especially last weeks final smackdown, one cannot be human and not ask themselves the obvious question....... "why am I even in this casino?"
What an absolutely wretched week of dollar strengthening and Precious metals beatdown......expecially the mining shares. I talked about this assault on the psychology of the holders of these shares for the past 7 years. Much of that 7 years was in a similar beatdown until the past year.
For the first few months of 2016, we were afraid to talk lest we bring the veil of death over our maligned trade, but by March it was clear we had begun a serious bull move in mining shares. They continued to move most of the mining shares up through July while gold began to slowly drift down. Commercials that were long last December slowly began to grow more short as the smart money positioned themselves for the attack on the trade and the unwinding of the dumb money that jumped on late in the year for their mo mo fortune. Technicals began to repair on the miners and metals with a sideways to downward bias chop, but the weekly charts showed plenty of room to go to oversold and they DID. Once the bottom pickers moved in then the real slaughter warmed up in October November and finally December.
Sentiment has been crushed. A once glorious rise from the ashes this year has been converted into a high density killing field with no discernible end in sight. Just the kind of landscape a predator likes and I think they love what they see now. Optimism in this trade can get you killed. Pessimism can make you money. enjoy