The Unrelenting LegHounds
I was ready to call it a night when I saw it. Felt I should start a new thread because of it.
I'm speaking, of course, of the $23, 2-minute shockwave that hit the Globex at 10:21 pm EDT. This, of course, is normal action for late on a Thursday night. Nothing strange, at all. <heavy sarc>
The main thing you need to know is this: We have ourselves another coordinated takedown of the metals, just like Leap Day. The action on the Globex both this afternoon and tonight confirms that the "LegHounds" are far from finished. They've constructed this selloff in order to help themselves continue to cover as many additional shorts as they can. When the gold broke out on Friday and silver yesterday, they weren't ready. Though the last CoT showed a 75% reduction in the EE silver net short ratio, they were still imbalanced by over 14,000 contracts. Today's action and the action to come is helping to rectify this, of that you can be certain.
Again, all I ask is that you remain patient. Please continue to use this and any additional bouts of weakness to gradually add to your stack and prepare for what is coming.
Gold is already $15 off the lows of last hour so let's see if price is brought back up into the two London physical fixes. Once we get past 10:00 am EDT, however, make sure you're wearing long pants. The LegHounds will likely return with a vengeance.