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“Markets Only Do This When Conditions Are Getting Worse”
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
wolfstreet.com / by Christine Hughes •
Is the rally the real deal? Watch the credit markets.
By Christine Hughes, Chief Investment Strategist, OtterWood Capital:
Since last Thursday’s intra-day low, the S&P rallied +6.6% in four days with the former laggards and most heavily shorted stocks leading the charge. This action is very typical of a bear market rally and should be viewed with skepticism. A great example of a laggard leading is Freeport McMoRan (FCX) which rallied +63% in four days before giving some back. Even with that huge surge, this stock is still down -66% the past year.
Given what was becoming a large short position in the market (see bottom of chart below), there has been what we call a “squaring of positions” the past week, driving global markets higher. Shorts have begun to cover which forces buyers into the market when they would really rather not be buyers.
The post “Markets Only Do This When Conditions Are Getting Worse” appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/02/20/markets-only-do-this-when-conditions-are-getting-worse/
